Finance
Amortization refers to the:
AInterest charged on the outstanding loan balance
BProcess of gradually paying off a loan through regular principal and interest payments✓ Correct
CAdjustment of the interest rate in an ARM loan
DLender's fee for originating a loan
Explanation
Amortization is the process of paying off a loan over time through regular payments that include both principal and interest, gradually reducing the outstanding loan balance to zero.
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