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15 R4 Ymfsaifpofpekz4 W9 Qfszadlgpgo0 Erjxm27 Hsmbaezbmcyzxcopmlsixf15 Essay

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1- The interest rate method which requires the interest on the loan to be paid in advance is called ------------------ method, while the interest rate method that adds the interest owed to the principal is called -----------------.

a) Simple, discount rate
b) Discount rate, add-on rate
c) Add-on rate; simple rate
d) Annual percentage rat, add-on rate
e) Discount rate; annual percentage rate

2- Jasim asks for a $15,000 loan for one year. The bank tells her that they will give her $13,050 immediately and deduct $1950 in interest up front. What is the annual percentage rate of this loan?

a) 14.94 percent
b) 13.00 percent
c) 19.50 percent
d) 11.50 percent
e) 10.50 percent

Use the following information to answer the next 4 questions

Ahmed wanted to purchase a car but does not have the money to pay for it in cash. He therefore approached Ahli United Bank for a BD 6000 loan and agreed to pay it over 12 months equal installments and an interest rate of 15% per annum. The...

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