You need $25,000 today and have decided to take out a loan at 7 percent interest for five years. Which one of the following loans would be the most expensive for you? Assume that interest is compounded on a monthly basis.

Group of answer choices

Amortized loan with equal loan payments

Interest-only loan

Pure discount loan

Balloon loan where 50 percent of the principal is repaid as a balloon payment

Amortized loan with equal principal payments