restorago on methods to compute finance charges Comparing Loan Payments Using the Simple-Interest and Add-On Methods of Interest Computation Installment loans allow borrowers to repay the loan with periodic payments over time. They are more common than single payment loans because it is easier for most people to pay a fixed amount periodically (usually monthly) than budget for paying one big amount in the future. Interest on installment loans may be computed using the simple interest method or the add-on method For an installment loan using simple interest and equal payments throughout the life of the loan, interest is charged only on the outstanding batang nach payment is made, more of it is allocated to reducing the principal. As the principal owed decreases, so too does the Interest charged on it. Since the payment is always the same each month, the allocation between principal and interest is always different (more to the price and less to the interest). The add-on method is a widely used technique for computing interest on instalment loans. We the add-on method, interest is calculated by applying the stated interest rate to the original balance of the loan. Andrew and Darnell are taking out installment loans for $2,300 at a stated interest rate of 10%. The term of each loan is two years. - $27.33 14 $27.83 $89.79 $90.26 $90.73 $91.20 $48.01 $48.49 $48.96 15 $34.18 $34.67 $35.16 $35.65 $36.15 $28.34 16 $23.27 $20.61 $18.74 $23.79 121.14 $19.27 $24.32 $21.69 $19.86 $24.85 $22.25 $20.44 $25.39 $22.81 $21.02 $25.94 $23:38 $21.61 $26.49 $23.95 $22.21 $28.85 $29.37 17 18 $49.44 $49.92 $50.41 $50.90 $91.68 $92.16 $92.63 19 $29.90 $30.43 $36.66 $37.16 20 Rook Pro Answer the following questions using the preceding repayment information table as necessary Andrew Darnell Andrew's loan uses simple interest to compute finance charges. Damells loan uses the add-on method to compute finance charges Andrew's monthly payment rounded to the nearest contis Damell's total finance charge rounded to the nearest cent Complete the following tables using all interim figures rounded to the nearest cent in your calculations. Inter algures as positive numbers rounded to the nearest cent. (Note: The tables are slightly different to reflect the different methods used for finance charges.) Andre Simple Darnell - Add-On Total pa . $ Principal Principal $ Finance charge $ Finance charge $ Total payments Who paid more for the same loan? Darnell, whose loan used the add-on method to compute finance charges O Darnell, whose loan used the simple interest method to compute finance charges Andrew, whose loan used the simple interest method to compute finance charges Andrew, whose loan used the add-on method to compute finance charges Save & Continue Grade It Now Continue without saving