Final answer:
The ending balance of an amortized loan contract is zero, as the loan is designed to be completely paid off through regular payments that cover both principal and interest by the end of the loan term.
Step-by-step explanation:
The ending balance of an amortized loan contract will be Zero. Amortization refers to the process of paying off a debt over time through regular payments, where part of each payment goes towards the loan principal and part goes towards interest.
With each payment, the loan balance decreases because a portion of the payment reduces the principal, while the rest covers the interest. This continues until the end of the loan term, at which point the balance is zero since the entire loan amount, along with any interest that was due, has been fully paid off.
Therefore, the ending balance of an amortized loan contract should not be positive or negative, but rather exactly zero, if all the payments have been made as scheduled.