A single-payment loan is advantageous to a borrower only if: a. the interest rate is more...
A single-payment loan is advantageous to a borrower only if:
a. the interest rate is more than that on an installment loan offered by commercial banks.
b. funds are expected to be available in the future to repay the loan in a lump sum.
c. the finance charges are calculated using the discount method.
d. the finance charges are calculated using the simple interest method.
e. it has a collateral note.
Homework Answers
funds are expected to be available in the future to repay the loan in a lump sum.
Only if the person has the interest plus principal amount at the end of the loan, the single-payment loan is good.
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Drop down options:
1. Garret, Mike
2. add-on, simple interest
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Drop down options:
1. the same as, differently from
2. less, plus
3. $9280, $6720
4. -, x, /, +
5. -, x, /, +
6. principal, payback
7. annual, monthly
8. months, years
9. principal, loan disbursement
10. higher than, the same as, lower than
7. Calculating finance charges using the discount method and APRon a single payment loan You are taking out a single-payment loan that uses the discount method to compute the finance charges. Computing the finance...
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