Finance
An amortized loan is one in which each payment:
ACovers interest only
BCovers only the principal balance
CCovers both interest and principal, fully retiring the debt over the loan term✓ Correct
DIncreases monthly as the outstanding balance rises
Explanation
A fully amortized loan has payments that include both interest and principal; each payment reduces the outstanding balance so the loan is paid off in full at the end of the term.
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