1) Which results in a lower total interestcharge, borrowing $1,480 to be repaid 12 months later as asingle-payment loan or borrowing $1,480 to be repaid as a12-month installmentloan? Assume a simple interest method of calculation at 12.25 percent interest. Defend your answer.Click on the table icon to view the MILPF table LOADING...

.

The amount of interest on thesingle-payment loan is $

nothing

.(Round to the nearestcent.)

The amount of interest on the12-month installment loan is $

nothing

. (Round to the nearestcent.)

Why does the12-month installment loan result in lower interestcharges?(Select the best choicebelow.)