Your bank grants you a lump sum loan today equal to the face value of the loan less the interest.Further you must repay the face value of the loan amount in a single lump sum at the end of one year.These terms most closely resemble which of the following types of bank loan?
A) Straight loan with a pre-set payment schedule
B) Compensating balance loan
C) Line of credit
D) Discount loan
Correct Answer:
Verified
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