Amortization is a method applied to periodically lower the book value of an intangible asset over a specified period of time. After one year of payment, the total interest would be $1,100.
What is amortization?
Amortization means scattering payments over manifold periods. The term is used for two discrete processes. Amortization of loans and amortization of assets.
In the last-mentioned case, it refers to delegating the cost of an intangible asset over a period of time.
The total amount of interest that would be paid in the first year is $1,100 which is shown in the image given below.
Therefore, the amount of total interest payment would be $1,100.
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