An amortizing loan is one in which:
A) the principal remains unchanged with each payment.
B) accrued interest is paid regularly.
C) the maturity of the loan is variable.
D) the principal balance is reduced with each payment.

Question

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An amortizing loan is one in which the principal balance is reduced with each payment. This means that a portion of each payment goes towards paying off the principal amount borrowed, as well as the interest that has accrued on the balance. This process continues until the loan is fully paid off.

An Amortizing Loan Is One in Which