Final answer:
The correct word to fill in the blank is 'amortize,' which means to pay off a loan through regular installments over a set period of time.
Step-by-step explanation:
Raymond and Lisa chose to amortize their mortgage payments over 20 years. To amortize a loan means to pay it off in regular installments over a period of time until the balance is reduced to zero. It includes both principal and interest components, with the interest portion decreasing over time as the principal balance is reduced. The options provided include other financial terms, but 'depreciate' refers to the reduction in value of an asset over time, 'deprecate' means to express disapproval of something, and 'appreciate' indicates an increase in value. Therefore, the correct word to fill in the blank is 'amortize'.
For example, if Raymond and Lisa have a mortgage of $200,000 with an interest rate of 3% and choose to amortize it over 20 years, they would make regular payments each month that would gradually decrease the debt until it is completely paid off by the end of the 20-year period.