Which results in a lower total interest charge, borrowing $790 to be repaid 12 months later as a single-payment loan or borrowing $790 to be repaid as a 12-month installment loan? Assume a simple interest method of calculation at 13 percent interest.
Which results in a lower total interest charge, borrowing $790 to be repaid 12 months later as a single-payment loan or borrowing $790 to be repaid as a 12-month installment loan? Assume a simple interest method of calculation at 13 percent interest.
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
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Transcribed Image Text:Which results in a lower total interest charge,
borrowing $790 to be repaid 12 months later
as a single-payment loan or borrowing $790
to be repaid as a 12-month installment loan?
Assume a simple interest method of
calculation at 13 percent interest.
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