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

Multiple Choice

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:

A) foreclosing on the debt.
B) amortizing the debt.
C) funding the debt.
D) calling the debt.
E) refunding the debt.