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enot [183]
3 years ago
10

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 b

e 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.
Business
1 answer:
irina1246 [14]3 years ago
4 0

Answer:

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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