Why are loan payments under the simple interest method usually lower than loan payments under the add-

Question:

Why are loan payments under the simple interest method usually lower than loan payments under the add- on interest method?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Personal Finance

ISBN: 978-0132994347

5th edition

Authors: Jeff Madura

See More Books

Question Posted: Oct 13, 2015 05:33 AM

See More Questions

List the steps in buying a car. What financial criteria should be considered? Discuss each briefly.
Who extends student loans? What are the characteristics of student loans?
What information is included in a loan contract? How is the amount of the loan determined?
Read the article Somatoform and Related Disorders: An Update which address personality disorders, substance abuse, as any of these behaviors are often considered to be predictors of crime and/or...
Your client, Paul, owns a one-third interest as a managing (general) partner in the service-oriented PRE LLP. He would like to retire from the limited liability partnership at the end of 2016 and...
Determine the rating of a generator in kVA for a home in order to ensure that the following systems and appliances can be operated in case of a long-term power outage: (a) Air conditioner rated at...
You were engaged to examine the financial statements of Ronlyn Corporation for the year ended June 30. On May 1, the Co poration borrowed $\$ 500,000$ from Second National Bank to finance plant...
Carmen Dahlen opened a secretarial school called Star office Training. a. Dahlen contributed the following assets to the business: Cash ........$5,700 Computers ....... 5,000 Office Equipments ......
Can we expect to see some long-term beneficial consequences from COVID-19 and its associated hysteria (mandatory business closure, social distancing, etc.)? Think about the Broken Window Fallacy and...
On June 1, John Sullivan opened a real estate office in Hamilton called Sullivan Realty. The following transactions were completed for the month of June. Note that facsimile documents have been...
How are payments calculated under the add- on interest method?
Why is purchasing a new car online not as efficient as buying a new car at a dealership?
Bond or debt securities pay a stated rate of interest. This rate of interest is dependent on the risk associated with the investment. Fitch Ratings provides ratings for companies that issue debt...
Suppose that an infinitely long straight wire carries a uniform line charge density of 1. Find the electric field at a distance z from the wire, using two different methods: a) by integrating all the...
Calculate total assets, total liabilities, and total shareholders' equity. Total assets Total liabilities tA Total shareholders' equity $ Prepare Blossom's accounting equation. Equation: = + + $
what ways do advanced computational fluid dynamics (CFD) simulations enhance the understanding and prediction of wind-induced effects on tall buildings and bridges ?
Discuss the principles of soil-structure interaction and elucidate its significance i n the design and analysis of deep foundation systems.
How does the implementation of finite element analysis contribute to the optimization of complex structural systems in civil engineering ?
In Problems 5368, determine whether each infinite geometric series converges or diverges. If it converges, find its sum. 2+ + 010 +=+
Medi-Exam Health Services, Inc. (MEHS), located in a major metropolitan area, provides annual physical screening examinations, including a routine physical, EKG, and blood and urine tests. MEUS's...
Carazona, Inc., is a U.S. firm that has a large subsidiary in Indonesia. It wants to finance the subsidiarys operations in Indonesia. However, the cost of debt is currently about 30 percent there for...
Zylon Co. is a U.S. firm that provides technology software for the government of Singapore. It will be paid S$7 million at the end of each of the next 5 years. The entire amount of the payment...
Orlando Co. has its U.S. business funded with dollars with a capital structure of 60 percent debt and 40 percent equity. It has its Thailand business funded with Thai baht with a capital structure of...
a) The function is increasing. The table below gives values for the function at selected values of x. A logarithmic regression y=a+blnx is used to model the data. Find the logarithmic regression...
4. It can be shown using material from a later section that is given by 0-122 dx (-1)na2n+1 n!2n (2n+1) n=0 for any positive value of a. When a is positive, this series is an alternating series. (a)...
Using desmos, graph each of the following functions. Identify the open interval(s) for which the requested characteristic is displayed. #1 ON [-2,2] FUNCTION INCREASING f(x)=xcosx (0.96,0.96) FIRST...

Why are loan payments under the simple interest method usually lower than loan payments under the add-

Question:

Step by Step Answer:

Under the simple interest method interest is calculated on the remainin...View the full answer

Personal Finance

Students also viewed these Corporate Finance questions