Final answer:
D. fully amortized loan
A fully amortized loan is a real estate loan payable in periodic installments that are sufficient to pay the principal in full during the term of the loan.
Step-by-step explanation:
A real estate loan payable in periodic installments that are sufficient to pay the principal in full during the term of the loan is called a fully amortized loan.
This type of loan allows the borrower to gradually pay off the principal amount along with the interest over the loan term. Each installment payment consists of both principal and interest, so by the end of the loan term, the entire principal amount will be repaid.
For example, let's say you take out a 30-year mortgage loan. The loan is fully amortized, meaning that your monthly payments are designed to pay off the principal balance by the end of 30 years.
The installment payments include both the principal and the interest, which gradually decreases over time as the principal balance reduces. By the end of the loan term, you will have repaid the full principal amount through these installments.