Final answer:
An amortization table provides information about a loan, including the breakdown of each payment over time and how the loan balance decreases.
Therefore, the correct answer is: option a) 'A loan'
Step-by-step explanation:
An amortization table is a schedule that shows the breakdown of each payment over time, including the amount applied towards principal and interest.
The table helps borrowers understand how much they owe, how their monthly payments are applied, and how the loan balance decreases over time.
The amortization factor spreads the total costs associated with a device over the life of the device, taking into account the time value of money.
For example, let's say you borrow $50,000 at an interest rate of 5% for 5 years.
The amortization table will show you each monthly payment, how much of it goes towards interest, how much goes towards reducing the principal, and the remaining loan balance at each payment.