Final answer:
The term 'amortized' in a loan repayment schedule refers to the structured process of repaying both the principal and the interest with equal payments over the life of the loan. Option B is correct.
Step-by-step explanation:
In a loan repayment schedule, the term amortized refers to B) the repayment of the principal and interest through a series of equal payments. When a loan is amortized, each payment contributes to both the principal amount and the interest, gradually reducing the balance owed until the loan is fully paid off.
The value of an amortized loan from a bank's perspective can be influenced by various factors in the market such as the borrower's creditworthiness, prevailing interest rates, and whether the loan is being sold in the secondary loan market.