A Pure Discount Loan Is Defined as a Loan Where

A pure discount loan is defined as a loan where a borrower receives money today in exchange for:

A) Annual interest payments and the repayment of the principal at the end of the loan period.
B) Increasing loan payments over the life of the loan.
C) Equal loan payments over the life of the loan.
D) Equal loan payments for a period of time followed by one large payment at the end of the loan term.
E) One lump sum payment at the end of the loan term.