The entire repayment of which one of the following loans is computed simply by computing a single future value?

Question

Quizplus · Accepted Answer

A pure discount loan features a single, lump-sum payment that equals the amount borrowed plus interest. The future value of this lump sum is the amount due at maturity, and this is the only repayment required. Therefore, the entire repayment for a pure discount loan is computed by simply computing a single future value.

The Entire Repayment of Which One of the Following Loans