Finance
In New Mexico, which of the following is a characteristic of a 'fully amortized loan'?
AThe loan has a balloon payment at the end
BRegular payments of principal and interest completely pay off the loan by the end of the scheduled term✓ Correct
COnly interest is paid throughout the loan term
DThe principal balance never changes
Explanation
A fully amortized loan is one where the regular scheduled payments are sufficient to completely eliminate the principal balance by the end of the loan term, with no balloon payment required.
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