You are looking to take out a $49,000 loan to pay for school. The loan would be afive-year loan. The lender offers you a 7% 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. discount loan

B. amortized loan

C. interest-only loan

n 7 of 21 (0 completelv B You are looking to take out a $49,000 loan to pay for school. The loan would be a ve-year loan. The lender offers you a 7% interest rate on the loan and also offers to structure it in one of three ways: a) As a discount loan b) As an interestonly 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)disoountloan? D b) interest-only loan? D c) amortized loan? D Which of these loans will collect the lowest amount of interest over the life of loan? 0 A. disoountloan O B. amortized loan 0 C. interest-only loan