Amortization

About Amortization

Amortization is the process of repaying debt in a series of regular payments. Each payment has a principle portion that goes toward the loan balance and an interest portion. The amount allocated toward principal increases steadily month by month as the debt amortizes, starting out little at first.

Amortization enables lenders to extend loans and have a schedule of repayment by loan taker. Amortization schedules is used by financial institutions like banks, finance companies, microfinance companies, etc. ,on the basis of a specific maturity date.

Why is Amortization important?

Amortization is essential since it helps in the understanding and long-term forecasting of expenses for organizations and investors. An amortization schedule clarifies how much of a loan payment is made up of principle versus interest in the context of loan repayment.

Amortization enables users to make large purchases which their purchasing power does not provides. It is specifically used for home loans, vehicle or car loans, etc. Now financial institutions also provides loan on the basis of Amortization for house repairs as well.

Who should take the Amortization Exam?

• Students in high school with an interest in finance.
  
• College or university students enrolled in a business program or mathematics of finance course.
• Commercial Loan Analyst
• Real Estate Development Accountant
• Loan Boarding Specialist
• Senior Accountant
• Those with an understanding of annuities and annuity calculations
• Knowledge of using a scientific calculator or a business financial calculator like the BA II Plus
• Interest in mathematics problems involving financial calculations

Knowledge and Skills required for the Amortization

Candidates gain quick success if they have skills of critical thinking and communication skills.

Amortization Practice Exam Objectives

Amortization exam focuses on assessing your skills and knowledge in loans, rates and amortization schedule.

Amortization Practice Exam Pre-requisite

There are no prerequisites for the Amortization exam. Candidates who are well versed  in finance can easily clear the exam.

Amortization Certification Course Outline

1. Introduction to Amortization
2. Amortization Methods
3. Amortization Schedule
4. Loan Amortization
5. Bond Amortization
6. Accounting for Amortization
7. Amortization of Intangible Assets
8. Tax Implications of Amortization
9. Amortization Analysis
10. Advanced Topics in Amortization
    
    

Exam Format and Information
Certification name – Amortization Certification
Exam duration – 60 minutes
Exam type - Multiple Choice Questions
Eligibility / pre-requisite - None
Exam language - English
Exam format - Online
Passing score - 25
Exam Fees  - INR 1199