If the discount method is used to calculate a finance charge of $250.60 on a $2,400 loan,the amount to be disbursed to the borrower is $2,400.

Name: If the discount method is used to calculate a finance charge of $250.60 on a $2,400 loan,the amount to be disbursed to the borrower is $2,400.
Brand: Quizplus
Rating: 4.9 (40 reviews)

Question

Quizplus · Accepted Answer

The discount method subtracts the finance charge from the loan amount to determine the amount to be disbursed to the borrower. Therefore, the amount to be disbursed would be $2,149.40 ($2,400 - $250.60).

If the Discount Method Is Used to Calculate a Finance