Which results in a lower total interest charge, borrowing $1 comma 520 to be repaid 12 months later as a single-payment loan or borrowing $1 comma 520 to be repaid as a 12-month installment loan? Assume a simple interest method of calculation at 11.50 percent interest. Defend your answer. Note: Round intermediate computations to at least five (5) decimal places. Click on the table icon to view the Monthly Installment Loan Payment Factor (MILPF) table: LOADING.... Question content area bottom Part 1 The amount of interest on the single-payment loan is $ enter your response here. (Round to the nearest cent.)
Which results in a lower total interest charge, borrowing $1 comma 520 to be repaid 12 months later as a single-payment loan or borrowing $1 comma 520 to be repaid as a 12-month installment loan? Assume a simple interest method of calculation at 11.50 percent interest. Defend your answer. Note: Round intermediate computations to at least five (5) decimal places. Click on the table icon to view the Monthly Installment Loan Payment Factor (MILPF) table: LOADING.... Question content area bottom Part 1 The amount of interest on the single-payment loan is $ enter your response here. (Round to the nearest cent.)
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
Related questions
Question
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Which results in a lower total interest charge, borrowing $1 comma 520 to be repaid 12 months later as a single-payment loan or borrowing $1 comma 520 to be repaid as a 12-month installment loan? Assume a simple interest method of calculation at 11.50 percent interest. Defend your answer.
Note: Round intermediate computations to at least five (5) decimal places.
Click on the table icon to view the Monthly Installment Loan Payment Factor (MILPF) table: LOADING....
Question content area bottom
Part 1
The amount of interest on the single-payment loan is $
enter your response here. (Round to the nearest cent.)
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