Final answer:
An amortizing loan is a loan that is fully repaid, including principal and interest, through a series of regular and equal installment payments.
Step-by-step explanation:
A loan to be completely repaid, including both the principal and interest, by a series of regular, equal installment payments is called an amortizing loan. This type of loan is commonly used for mortgages, where borrowers make monthly payments over a fixed period of time until the loan is fully repaid.
For example, let's say you borrow $200,000 for a 30-year mortgage with an interest rate of 4%. Each month, you would make a fixed payment that includes both interest and a portion of the principal, gradually reducing the loan balance over time. By the end of the 30 years, you would have repaid the full loan amount along with the accumulated interest.