Finance

What is an 'amortized loan' in Kansas real estate financing?

AA loan with a balloon payment at maturity
BA loan repaid in regular installments that include both principal and interest✓ Correct
CA loan with interest-only payments
DA loan secured by personal property only

Explanation

An amortized loan is repaid through regular (usually monthly) payments that cover both interest and a portion of principal, so the balance decreases to zero by the end of the term.

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