"6. (TCO 3) Match the following terms with the examples as appropriate: (Points: 4),,Matching: ,: Pure discount loan ,: Amortized Loan ,: Interest-only Loan ,: Treasury Bill ,,Answer 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 the US government 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. ,,,7. (TCO 3) You are interested in saving to buy a new machine that costs $387,120. You can deposit $32,805 in your bank today. If your bank pays 14% annual interest on its accounts, how long will it take you to save for the new machine? (Points: 4),about 19 years ,about 5 years ,about 12 years ,Can not be determined ,,,8. (TCO 3) How can we apply the concept of time value of money in evaluating a mortgage? (Points: 6),"
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