You will borrow $$40,000$ today at $6\mathrm{.}5$ percent annual interest. Which one of the following loans would be the least expensive for you? Assume interest is compounded monthly.

Multiple Choice

$5-$year interest$-$only loan paid monthly

$5-$year amortized loan with equal monthly loafimith payments

$10-$year balloon loan where $50$ percent of the principal is repaid as a balloon payment at the end of year $5$

$10-$year amortized loan with equal monthly loan payments

$10-$year Pure discount loan