A bank offers you a $72,000, 4-year term loan (to be fully amortized over 4 years) at an annual interest rate of 7%. What will your annual loan payment be?

Group of answer choices

$20,720

$23,014

$21,256

$19,704

Which one of the following terms is used to describe a loan whereby the borrower pays only a lump sum at maturity; no other payments are made by the borrower:

Group of answer choices

fully amortized loan

interest-only loan

modified loan

pure discount loan