Marcie Mays plans to have $350,000 in retirement fund 30 years from now. What monthly ordinary annuity payment should she make if the investment she has selected earns 7.2% annual interest? a. $3,129.09 b. $275.76 c. $871.29 d. $2,757.59

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Amortized Loans

The term "amortization" refers to spreading the value of a loan or a debt over a series of regular payments or installments comprising of both the principal and interest amount. It generally involves the process where in the value of a loan or an intangible asset is written down over its maturity period.