Q 54

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.

Q 55

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

Q 56

The most accurate method currently available for calculating the annual percentage rate (APR)on an add-on loan is the Rule of 78.