Loans on which the interest is paid in advance are often called
A) premium loans.
B) discount loans.
C) reduced-principle loans.
D) called loans.

Question

Quizplus · Accepted Answer

Loans on which the interest is paid in advance are often referred to as discount loans. This is because the borrower receives less money upfront than the face value of the loan, because some of the interest has already been paid in advance.

Loans on Which the Interest Is Paid in Advance Are