OK, so kind of a newbie questions here..
The way I've previously looked at amortization has been on a yearly basis. For example, a loan has a 5 year term, but amortizing over a 30 year period.
A few days ago, I was asked by a European professional to size a loan that has a 2% annual amortization, which made me confused, as I've never encountered that before. Can someone please help me understand the difference between the two methods?
Greatly appreciated!
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