Question: 1. Explain how the interest is calculated on a consumer loan that uses the declining-balance method. 2. Summarize how interest is calculated on a consumer

1. Explain how the interest is calculated on a consumer loan that uses the declining-balance method.
2. Summarize how interest is calculated on a consumer loan that uses the add-on method.
3. What is the effect of the rule of 78s when a borrower repays an add-on method loan early?
4. Explain how the interest is calculated on a consumer loan that uses the discount method.

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