You are looking to take out a $43,000 loan to pay for school. The loan would be afive-year loan. The lender offers you a 9% interest rate on the loan and also offers to structure it in one of threeways:

a) As a discount loan

b) As aninterest-only loan

c) As an amortized loan.

Rounded to the nearest wholedollar, what will be your balance at the end of year 1 if you take the loan asa:

a) discountloan?

b) interest-onlyloan?

c) amortizedloan?

Which of these loans will collect the lowest amount of interest over the life ofloan?

A. interest-only loan

B. discount loan

C. amortized loan

You are looking to take out a $43,000 loan to pay for school. The loan would be a ve-year loan. The lender offers you a 9% interest rate on the loan and also offers to structure it in one of three ways: a)As a discount loan b)As an interest-only loan c)As an amortized loan. Rounded to the nearest whole dollar, what will be your balance at the end of year 1 if you take the loan as a: a) discount loan? D b) interest-only loan? D c) amortized loan? |:| Which of these loans will collect the lowest amount of interest over the life of loan? 0 A. interest-only loan 0 B. discount loan 0 C. amortized loan