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Please post the work, so I can understand the process :) Which one of the following...

Please post the work, so I can understand the process :)

Which one of the following describes a loan wherein payments are even (equal) in amount and include both interest and principal?  

A.

amortized loan

B.

modified loan

C.

balloon loan

D.

pure discount loan

E.

interest-only loan

There are two annuities that offer monthly payments of $1,500 for five years and pay 0.18 percent interest per month. Annuity A will pay you on the first of each month while annuity B will pay you on the last day of each month. Which one of the following statements is correct concerning these two annuities?  

A.

These two annuities have equal present values but unequal futures values at the end of year five.

B.

These two annuities have equal present values as of today and equal future values at the end of year five.

C.

Annuity B is an annuity due.

D.

Annuity A has a smaller future value than annuity B.

E.

Annuity B has a smaller present value than annuity A.
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Answer #1

ANSWER 1 CORRECT OPTION : OPTION (A) EXPLANATION: An amortized loan means that the initial loan shall be written off in equal

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