Binder and Sons borrowed $138,000 for three years from their local bank and now they are paying monthly payments that include both principal and interest.Paying off debt by making instalment payments,such as this firm is doing,is referred to as:

Question

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Amortizing the debt refers to paying off debt through regular instalment payments that include both principal and interest. This method ensures that the debt is fully paid off by the end of the loan term. Foreclosing on the debt refers to the lender taking ownership of the asset used as collateral in case of default. Funding and refunding the debt refer to obtaining new financing to pay off the existing debt. Calling the debt refers to demanding full payment before the end of the loan term.

Binder and Sons Borrowed $138,000 for Three Years from Their