Question

if in month 4 you took out a loan for $1,000 and fully repaid $1,100 for the loan 7 months later what was the amortization period?

Answer 1

The amortization period for the loan taken out in month 4 and repaid 7 months later is 7 months. This is the time it took to pay back the loan in full.

Step-by-step explanation:

The question asks about the amortization period of a loan. The amortization period is the total length of time it takes to pay off a loan in full, including both the principal and the interest. If you take out a loan for $1,000 in month 4 and repay $1,100 in month 11, the amortization period is the duration from the loan's inception to its payoff, which in this case is 7 months.