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?
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?
Chapter4: Time Value Of Money
Section4.17: Amortized Loans
Problem 1ST
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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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