Which results in a lower total interest​ charge, borrowing ​$1,290 to be repaid 12 months later as a​ single-payment loan or borrowing ​$1,290 to be repaid as a​ 12-month installment​ loan? Assume a simple interest method of calculation at 12.75 percent interest. Defend your answer. what is the amount of interest on the​ single-payment loan?

Corporate Fin Focused Approach
5th Edition
ISBN:9781285660516
Author:EHRHARDT
Publisher:EHRHARDT
Chapter4: Time Value Of Money
Section4.17: Amortized Loans
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Which results in a lower total interest​ charge, borrowing

​$1,290

to be repaid 12 months later as a​ single-payment loan or borrowing

​$1,290

to be repaid as a​ 12-month installment​ loan? Assume a simple interest method of calculation at

12.75

percent interest. Defend your answer.

what is the amount of interest on the​ single-payment loan?

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