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16 September, 23:57

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

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  1. 17 September, 00:03
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    Amortize loan woul'd be the best loan

    Explanation:

    Even though there are no options in the question, the amortize loan coul'd be the best loan, with equal principal payments.

    This one is a scheduled periodic payments that are applied to both principal and interests. This one first pays off the relevant interests expense for the period, and then the payment reduces the principal
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