Question: Which results in a lower total interest charge, borrowing $1,280 to be repaid 12 months later as a single-payment loan or borrowing $1,280 to be

Which results in a lower total interest charge, borrowing $1,280 to be repaid 12 months later as a single-payment loan or borrowing $1,280 to be repaid as a 12-month installment loan? Assume a simple interest method of calculation at 11 percent interest.

The amount of interest on the single-payment loan is $?

The amount of interest on the 12-month installment loan is $?

Why does the 12-month installment loan result in lower interest charges?

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