Answered: The most expensive method of…

The most expensive method of calculating the dollar cost of the interest on this installment loan will be? add on, discount, simple interest or declining balance method?

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter19: Lease And Intermediate-term Financing

Section: Chapter Questions

Problem 18P

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Calculating the Return On A Loan

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You want to borrow $1,000 at an interest rate of 10%. The most expensive method of calculating the dollar cost of the interest on this installment loan will be? add on, discount, simple interest or declining balance method?

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