This chapter states that when you borrow money there are three different ways to repay loans, which are listed below.If you were to take out a business loan to start up or expand your company, which method would you choose and why?Please be specific.This concept and related calculations are a part of the Week 5 assignment, so this is good practice.

1. A discount loan is when you pay off the principal and all the interest on the maturity day.The U.S. government uses this method with treasury bills.

2. Interest-Only Loan is a loan that allows you to pay only the interest cost as you go and pay the principal at the maturity date of the loan. (Bond market)

3. Amortized loan you pay both principal and interest as you go each pay period. We do this with our car payment each month. We benefit by being able to pay the loan and interest off at the same time. Plus each month the interest rates get a little lower