(TCO 3) Match the following terms with the examples as appropriate: (Points: 4)



: Pure discount loan

: Amortized Loan

: Interest-only Loan

: Treasury Bill

Potential Matches:

1: You obtained a business loan for four months. The loan will allow you to paid $300 in interest for three months and a final payment of interest and principal at the end of the four month.

2: You obtained a mortgage to buy a home. You will pay $800 per month to cover both interest and principal.

3: a way used by theUSgovernment to borrow money on short-term basis.

4: You borrow $1,000 from your best friend. In return, you will give him back $1150 in 3 months.