Title: Explain interest and the various methods by which interest is computed.
Course: Real Estate (12154) > Section: Exploring Real Estate Financing

Explanation should include

- interest amortized over years
- simple interest
- interest with balloon payment
- graduated interest
- adjustable rate interest.

DPOR correlations: 18VAC135-20-400. 6 (Mortgages and deeds of trust); 18VAC135-20-400. 7 (Types of mortgages); 18VAC135-20-400. 14 (Real estate financing)

Process/Skill Questions:

- How is simple interest calculated?
- How do amortized payments differ from those of a straight loan?