Bill just financed a used car through his credit union. His loan requires payments of $275 a month for 5 years. Assuming that all payments are paid timely, his last payment will pay off the loan in full. What type of loan does Bill have?

Question

Quizplus · Accepted Answer

Bill has an amortized loan because he is making regular payments of equal amounts over a fixed period of time with the understanding that the loan will be fully paid off by the end of that period.

Bill Just Financed a Used Car Through His Credit Union