If the add-on method is used to calculate a finance charge of $150.80 on a $2,200 loan,the amount to be repaid is $2,200.

Name: If the add-on method is used to calculate a finance charge of $150.80 on a $2,200 loan,the amount to be repaid is $2,200.
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Question

Quizplus · Accepted Answer

The add-on method adds the finance charge to the loan amount, so the total amount to be repaid would be $2,350.80 (($2,200 + $150.80) = $2,350.80). Therefore, the statement is false, and the correct answer is B.

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