Final answer:
The list detailing payment number, interest amount, principal amount, and remaining loan balance is called an amortization payment schedule. It is used for various loans, including mortgages, and helps in the systematic repayment of debt.
Step-by-step explanation:
The list that contains information about the payment number, how much of each payment goes towards interest, how much of each payment goes towards the principal, and the remaining balance of the loan is called an amortization payment schedule. This schedule details the process of paying off a debt over time through regular payments. A portion of each payment is applied to the principal amount borrowed, while the remainder of the payment covers the interest on the loan. This continues until the entire loan amount has been repaid.
When creditors calculate your minimum payment for credit cards, for instance, they use a formula that accounts for these factors, ensuring that payments are made regularly, typically every month. Likewise, a similar principle applies to other loans like mortgages. An example of an amortization payment would be calculating the monthly payment of a $1,000,000 house loan over 30 years with a nominal interest rate of 6% convertible monthly.