Final answer:
The correct term for the schedule showing the monthly payment for a home and the amounts applied to principle and interest is an amortization schedule, not a depreciation table. An amortization schedule breaks down payments into principal and interest portions, which change over the life of the loan.
Step-by-step explanation:
The statement suggests that the schedule showing the monthly payment for a home and the amounts applied to principle and interest is called a depreciation table. This is false. The correct term for this type of schedule is an amortization schedule. An amortization schedule provides a breakdown of each monthly payment into two parts: one part goes towards reducing the principal (the original loan amount), and the other part covers the interest on the loan. As more payments are made over time, the interest portion decreases and the principal portion increases, until the loan is fully repaid.
Loans are indeed assets to banks, with mortgage loans being a common example. These loans are repaid over a set period, such as 15 or 30 years, and can be sold to other financial institutions in the secondary loan market. When you carry a balance on a credit card, as in the provided example, the minimum payment calculated each month will include both principal and interest, with the interest being a function of the current balance.