Question: You will borrow $ 4 0 , 0 0 0 today at 6 . 5 percent annual interest. Which one of the following loans would

You will borrow $40,000 today at 6.5 percent annual interest. Which one of the following loans would be the least expensive for you? Assume interest is compounded monthly.
Multiple Choice
5-year interest-only loan paid monthly
5-year amortized loan with equal monthly loafimith payments
10-year balloon loan where 50 percent of the principal is repaid as a balloon payment at the end of year 5
10-year amortized loan with equal monthly loan payments
10-year Pure discount loan
You will borrow $40,000 today at 6.5 percent annual interest. Which

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