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 in principal plus the annual interest. The payments are in equal amounts, with the entire loan paid off by the end of the four years. Which type of loan does she have

amortised loan

Explanation:

Letitia borrowed money from the bank, and according to the loan regulations, she has to pay an equal amount for the rest of two years, which shows that it is a type of amortised loan. In amortised loan customers pay back the loan in stages, and they pay that according to the criteria of the bank.

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