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Under the Add-On Method for Determining Payments on a Consumer

Question 45

Multiple Choice

Under the add-on method for determining payments on a consumer loan,


A) service charges are added to the each monthly payment.
B) a service charge for loan handling is added to the amount borrowed.
C) interest is only added to the final monthly payment on the loan.
D) interest is added to the amount financed in order to determine the total monthly payments.

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