..BIU AA EEEEE 3 to) What is the difference between single payment and simple interest installment loans? (11) Which results in a lower total interest charge, borrowing $1000 to be paid in 12 installments or borrowing $1000 as a single-payment? Assume interest is 12% in both cases. (i) You took a $2,000 one-year loan to be paid back in 12 installments. The interest rate is 9%. Calculate the monthly payment and total cost. (ii) Suppose the lender of $2,000 uses add-on interest method (Rule 78 loan) and charges 8%, what is the monthly payment and the total cost. (iii) Explain why the bank payment and total cost are lower in (i) than it is in (ii) even when the interest is higher (iv) if you decide to payback the loan after 6 payments, how much would you save in interest in the Rule 78 loan? ace