11. if a friend whod never heard of amortization before asked you to explain how loan payments work, what…

Brief Explanations:

Amortization is the process of paying off a debt over time through regular, fixed installments. Each payment is split into two parts: one portion covers the interest charged by the lender for that period, and the remaining portion goes toward reducing the principal balance (the original amount borrowed). In the early stages of the loan, a larger percentage of the payment goes toward interest because the balance is high. As the principal is gradually paid down, the interest portion decreases, and a larger share of each subsequent payment is applied to the principal until the loan is fully repaid by the end of the term.

Answer:

Amortization is a method of repaying a loan through scheduled, equal payments that consist of both interest and principal. Initially, most of the payment covers interest, but over time, more of the payment goes toward paying off the actual loan balance until it reaches zero.