Final answer:
Amortized loans involve lenders earning interest in the payments and the total interest earned by the lender being the sum of the payments minus the principal.
Step-by-step explanation:
A. Lenders earn their interest in the payments. In an amortized loan, the borrower makes regular payments that include both principal and interest. As the borrower makes the payments, the lender earns the interest portion of each payment.
C. The total interest earned by the lender is the sum of the payments minus the principal. When calculating the total interest earned on an amortized loan, you subtract the original principal amount from the sum of all the payments made by the borrower.
Therefore, both options A and C are correct about amortized loans.