When the discount method is used,the borrower actually receives less money than the amount of the loan.

Name: When the discount method is used,the borrower actually receives less money than the amount of the loan.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The discount method involves subtracting a certain amount from the face value of the loan and giving the borrower the remaining balance. Therefore, the borrower receives less than the full amount of the loan.

When the Discount Method Is Used,the Borrower Actually Receives Less