Question

In a loan repayment schedule, the term amortized refers to

A) the method by which interest is calculated.
B) the repayment of the principal through a series of equal payments.
C) the life of the loan.
D) assets used to back the loan.

Answer 1

In a loan repayment schedule, the term amortized refers to the repayment of the principal through a series of equal payments.

Step-by-step explanation:

The term amortized in a loan repayment schedule refers to the repayment of the principal through a series of equal payments. This means that the borrower pays off the loan gradually over time, rather than paying a lump sum at the end of the loan term.