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Which Type(s)of Loan Repays the Interest as an Annuity and the Principal

Question 31

Multiple Choice

Which type(s) of loan repays the interest as an annuity and the principal as a lump sum?


A) Pure discount loans
B) Both amortized and interest-only loans
C) Amortized loans
D) Both interest-only and amortized loans
E) Interest-only loans

Correct Answer:

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