Question: Add - On Interest Loan. Beth has borrowed $ 8 , 9 0 0 on a four - year loan 7 % simple interest. Using
AddOn Interest Loan. Beth has borrowed $ on a fouryear loan simple interest. Using the simple interest method, her payments would be $ With an addon interest loan Beth's payment would be: This is a difference of per month.
Even though the same interest rate is used for both methods, the addon method is more costly because the interest payment is not reduced over time as Beth pays off the loan. While the interest component of the monthly payment: select best answer
A remains constant using the simple interest method
B decreases using the simple interest method
C increases using the simple interest method
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