How would you describe a loan arrangement with a $20,000 amount, 9% interest, a 30-year term, and a five-year call?

The correct description of a loan arrangement with those specific characteristics—$20,000 amount, 9% interest, a 30-year term, and a five-year call—would be characterized as partially amortized.

In a partially amortized loan, payments over the term of the loan do not cover the entire principal balance by the end of the term. Instead, they typically result in a reduced principal balance that becomes due as a balloon payment at the specified end of the loan's term. In this case, after five years, the remaining balance would be due at that time due to the five-year call feature.

This loan's specifics indicate that it is not fully amortized because a fully amortized loan would have its monthly payments structured to pay off both the principal and interest completely by the end of the designated term, which is not the case here. Additionally, 'discounted' loans generally refer to loans where interest is taken out of the principal amount before disbursement, which does not apply to this scenario. 'Wraparound' loans, on the other hand, involve a secondary financing that wraps around an existing mortgage, which also does not align with the characteristics of this loan.

Thus, the clear identification of this loan arrangement as partially