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Owen Roberts is borrowing $10,000 for five years at 7 percent. Payments, which are made on a monthly basis, are determined using the add- on
Owen Roberts is borrowing $10,000 for five years at 7 percent. Payments, which are made on a monthly basis, are determined using the add- on method. a. How much total interest will Owen pay on the loan if it is held for the full five-year term? b. What are Owen's monthly payments? c. How much higher are the monthly payments under the add-on method than under the simple interest method?
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