Letitia borrowed $6,000 from her bank two years ago.The loan term is four years.Each year, she must repay the bank $1,500 plus the annual interest.Which type of loan does she have?

Question

Quizplus · Accepted Answer

An amortized loan is a loan in which the borrower makes regular payments that include both principal and interest. The amount of interest paid each month decreases over time, while the amount of principal paid increases. This type of loan is typically used for mortgages and car loans.

Letitia Borrowed $6,000 from Her Bank Two Years Ago