Multiple Choice Question

Which one of these loans meets the definition of an amortized loan?

Multiple choice question.

A $5$ percent, $$5,000$ loan is to be repaid in two annual payments. The first payment is $$250$ and the second payment is $$5,250.$

A loan requires quarterly payments of $$500.$ The loan will be repaid in full when the last $$500$ payment is paid.

The annual payment for the first four years of a $5-$year loan is computed as the amount borrowed times the current market rate of interest.

A loan requires monthly interest payments with the principal repaid at maturity.Multiple Choice Question

Which one of these loans meets the definition of an amortized loan?

Multiple choice question.

A $5$ percent, $$5,000$ loan is to be repaid in two annual payments. The first payment is $$250$ and the second payment is $$5,250.$

A loan requires quarterly payments of $$500.$ The loan will be repaid in full when the last $$500$ payment is paid.

The annual payment for the first four years of a $5-$year loan is computed as the amount borrowed times the current market rate of interest.

A loan requires monthly interest payments with the principal repaid at maturity.Multiple Choice Question

Which one of these loans meets the definition of an amortized loan?

Multiple choice question.

A $5$ percent, $$5,000$ loan is to be repaid in two annual payments. The first payment is $$250$ and the second payment is $$5,250.$

A loan requires quarterly payments of $$500.$ The loan will be repaid in full when the last $$500$ payment is paid.

The annual payment for the first four years of a $5-$year loan is computed as the amount borrowed times the current market rate of interest.

A loan requires monthly interest payments with the principal repaid at maturity.