Explain why add-on installment loans are more expensive than simple interest loans
What will be an ideal response?
Answer: The add-on method generally results in an APR of close to twice the level of the stated interest rate because you are paying interest on the original principal over the entire life of the loan. Even though the amount of outstanding principal keeps decreasing as you pay back the loan, you still pay interest on the entire amount you originally borrowed.
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In the early stages of the banking crisis in the 1980s, financial institutions were especially harmed by
A) declining interest rates from late 1979 until 1981. B) the severe recession in 1981-82. C) the disinflation from mid-1980 to early 1983. D) all of the above.
A base use case serves as a ________ to develop other analysis and design artifacts
A) guide B) base C) template D) framework