Question
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
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
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