### Amortized Loan: Paying Back a Fixed Amount Periodically

Approximate Payments: | |
---|---|

Monthly payment: | $ |

Total payment: | $ |

Total interest: | $ |

### Deferred Payment Loan: Paying Back a Lump Sum Due at Maturity

Approximate Payments: | |
---|---|

Amount Due at Loan Maturity: | $ |

Total Interest: | $ |

### Bond: Paying Back a Predetermined Amount Due at Loan Maturity

Approximate Payments: | |
---|---|

Amount Received When the Loan Starts: | $ |

Total Interest: | $ |

A loan is a contract between a borrower and a lender in which the borrower needs to repay the lender a sum of money loaned part by part over time in order to clear the debt.

There are three types of loans:

1. Amortized: pay back a fixed amount

2. Deferred: pay back a lump sum at the end of the loan term

3. Bond: pay back a predetermined lump sum at the end of the loan term