An amortized loan:1) requires that all payments be equal in amount and include both principal and interest.2) repays both the principal and the interest in one lump sum at the end of the loan term.3) requires the principal amount to be repaid in even increments over the life of the loan.4) may have equal or increasing amounts applied to the principal from each loan payment.5) requires that all interest be repaid on a monthly basis while the principal is repaid at the end of the loan term.

An amortized loan:

1) requires that all payments be equal in amount and include both principal and interest.

Explanation:

For instance, company A can borrow from a bank an amortized loan - a type of short-term loan with scheduled and periodic payments that are applied to both the loan's principal and the interest.  Company A will then prepare an amortization schedule.  This schedule is the table of periodic loan repayments, showing the amount of principal and the amount of interest that are must be paid periodically until the loan is fully paid off at the end of its term.

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