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Author Question: If you borrow 50,000 at an annual interest rate of 12 for six years, what is the annual payment ... (Read 204 times)

biggirl4568

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on: Jul 10, 2018
If you borrow 50,000 at an annual interest rate of 12 for six years, what is the annual payment (prior to maturity) on a discount loan?
 
  A) 0.00
  B) 6,000.00
  C) 8,333.33
  D) 12,161.29

Question 2

If you borrow 100,000 at an annual rate of 8.00 for a 10-year period and repay the total amount of principal and interest due of 215,892.50 at the end of 10 years, what type of loan did you have?
 
  A) Amortized loan
  B) Interest-only loan
  C) Discount loan
  D) Compound loan


elizabethrperez

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Reply #1 on: Jul 10, 2018
Answer to Question 1

Answer: A
Explanation: A) Discount loans pay in full at maturity.

Answer to Question 2

Answer: C


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