Finance
A fully amortized loan means:
AThe loan requires a balloon payment at the end
BRegular equal payments fully pay off both principal and interest by the end of the loan term✓ Correct
COnly interest is paid during the loan term
DThe interest rate adjusts to fully amortize at maturity
Explanation
A fully amortized loan is paid off completely through equal periodic payments that include both principal and interest. Each payment reduces the outstanding balance so the loan reaches zero at the end of the term with no balloon payment.
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