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Which type(s) of loan can be repaid with annuity payments? Pure discount loan Both pure discount...

Which type(s) of loan can be repaid with annuity payments?

Pure discount loan

Both pure discount and interest-only loans

Amortized loan

Both interest-only and amortized loans

Interest-only loan

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Answer #1

Amortization refers to repayment or paying of loan in regular intervals. These regular interest payments are called annuity. These payments may be in the form of ordinary annuity or annuity due. Over a period loan will be amortized.

Hence, correct option is Amortized loan.

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