Under the discount method for calculating monthly payments on a consum

Under the discount method for calculating monthly payments on a consumer loan,

A)

the lender deducts the interest to be paid on the loan from the credit extended you at the beginning of the loan.
B)

you deduct the down payment on the sale from the final monthly payment.
C)

the lender reduces the monthly payments by the sale price reduction.
D)

you reduce the amount owed by interest income from an escrow account.

ANSWER

A