You are looking to take out a $43,000 loan to pay for school. The loan would be a five-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?

b) interest-only loan?

c) amortized loan?

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

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 five-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? b) interest-only loan? c) amortized loan? Which of these loans will collect the lowest amount of interest over the life of loan? A. interest-only loan B. discount loan C. amortized loan