You Want to Borrow $1,000 at an Interest Rate of 10

Multiple Choice

You want to borrow $1,000 at an interest rate of 10%. The most expensive method of calculating the dollar cost of the interest on the installment loan will be the:

A) add-on method.
B) double-declining-balance method.
C) discount method.
D) simple interest method.
E) past-due balance method.