Steven Riley is borrowing $10,000 for 5 years at 7 percent. Payments, which are made on a
Question:
Steven Riley is borrowing $10,000 for 5 years at 7 percent. Payments, which are made on a monthly basis, are determined using the add-on method.
a. How much total interest will Steven pay on the loan if it is held for the full 5-year term?
b. What are Steven’s monthly payments?
c. How much higher are the monthly payments under the add-on method than under the simple interest method?
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a Interest using the Addon Method 10000 7 5 years 3500 the total interest b Principal Interes...View the full answer
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Related Book For 
Personal Financial Planning
ISBN: 9780357438480
15th Edition
Authors: Randy Billingsley, Lawrence J. Gitman, Michael D. Joehnk
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