Question: Add - On Interest Loan. Beth has borrowed $ 8 , 9 0 0 on a four - year loan 7 % simple interest. Using

Add-On Interest Loan. Beth has borrowed $8,900 on a four-year loan 7% simple interest. Using the simple interest method, her payments would be $213.12. With an add-on interest loan Beth's payment would be: This is a difference of q, per month.
Even though the same interest rate is used for both methods, the add-on 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
Add - On Interest Loan. Beth has borrowed $ 8 , 9

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