If the Add-On Method Is Used to Calculate a Finance

question 7

Multiple Choice

If the add-on method is used to calculate a finance charge of $100.80 on a $1,800 loan, the amount to be:

• A)disbursed is $1,900.80.
• B)disbursed to the borrower is $1,800.
• C)repaid is $1,699.20.
• D)repaid to the borrower is $1,800.
• E)disbursed to the borrower is $100.80.

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