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

question 8

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