0
Still curious? Ask our experts.
Chat with our AI personalities
Taiga
Vivi
SteveNegative amortization occurs when the payments made on a loan are insufficient to cover the interest due, causing the outstanding balance to increase over time. This leads to the loan amount growing rather than decreasing with each payment. It is common in certain types of adjustable-rate mortgages where the payment amount is capped, resulting in unpaid interest being added to the principal balance.
Add your answer:
Earn +20 pts
What can a amortization table be used for?
An Amortization table is primarily used to schedule periodic payments on a loan, most typically a mortgage. Amortization refers to the process of paying off a loan or debt over time through regular monthly payments.
What kind of sign does anode has?
The anode has a positive sign. It is where oxidation occurs during electrolysis.
Can constructive criticism be viewed as negative advice on how to improve oneself?
Constructive criticism is meant to provide feedback on areas for improvement in a way that is helpful and supportive. While it can sometimes be perceived as negative, the intention behind it is to help the individual grow and develop. It should be viewed as an opportunity to learn and make positive changes.
How do you calculate EBIDTA?
EBITDA «ee-bit-dah» is an acronym for Earnings Before Interest, Taxes, Depreciation, and Amortization. The same calculation can be arrived at from "operating income before depreciation and amortization" (OIBDA). It is one measure of 'operating cash flow'. It differs from the cash flow from operations found in the Statement of Cash Flow primarily by ignoring payments for taxes or interest. EBITDA does not add back many of the other non-cash operating expenses, like the Statement of Cash Flow does. EBITDA also differs from free cash flow because of the difference above, and also because it does not recognize the cash requirements for replacing capital assets. Although there are different points of view regarding the use of this metric by equity owners, most agree to its validity when used by debtholders, or to evaluate a business's ability to handle debt.
What is meant by polarity of random error?
The polarity of a random error refers to whether the error is positive or negative relative to the true value. In statistical analysis, random errors can be equally likely to be positive or negative, and their effect should cancel out when many measurements are averaged. Monitoring polarity can help identify biases or systematic errors in data collection or measurement processes.
