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Bill Just Financed a Used Car Through His Credit Union

Question 39

Multiple Choice

Bill just financed a used car through his credit union.His loan requires payments of $275 a month for five years.Assuming that all payments are paid on time, his last payment will pay off the loan in full.What type of loan does Bill have?


A) Amortized
B) Complex
C) Pure discount
D) Lump sum
E) Interest-only

Correct Answer:

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