1. A loan with scheduled periodic payments that consist of both principal and interest is called a(n)
A) pure discount loan.
B) commercial loan.
C) amortized loan.
D) interest - only loan.
2. Which one of the following is an annuity due?
A) $800 paid at the beginning of each monthly period for three years, starting today.
B) $225 paid at the end of each monthly period for an infinite period of time.
C) $600 paid at the end of every quarter for five years, starting this quarter.
D) $900 paid today and $800 paid every year for ten years starting one year from today.