A Single-Payment Loan Is Advantageous to a Borrower Only If

Multiple Choice

A single-payment loan is advantageous to a borrower only if:

A) the interest rate is more than that on an installment loan offered by commercial banks.
B) funds are expected to be available in the future to repay the loan in a lump sum.
C) the finance charges are calculated using the discount method.
D) the finance charges are calculated using the simple interest method.
E) it has a collateral note.