You just borrowed $3,000 from your bank and agreed to repay the interest on an annual basis and the principal at the end of 3 years. What type of loan did you obtain?

Name: You just borrowed $3,000 from your bank and agreed to repay the interest on an annual basis and the principal at the end of 3 years. What type of loan did you obtain?
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Question

Quizplus · Accepted Answer

In an interest-only loan, the borrower pays only the interest periodically and repays the principal at the end of the loan term.

You Just Borrowed $3,000 from Your Bank and Agreed to Repay