When More Than One Payment Is Made on a Simple

question 7

Multiple Choice

When more than one payment is made on a simple interest loan,the method of computing interest is known as the:

• A)add-on interest method.
• B)average daily balance method.
• C)adjusted balance method.
• D)declining balance method.
• E)previous balance method.

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Definitions:

Bureaucracy

A system of government or management involving multiple layers of administration, strict policies, and rules.

Unity of Direction Principle

A leadership principle suggesting that team members should work towards the same objectives in a coordinated and cohesive manner.

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An organizational system characterized by structured procedures and formal rules, typically involving a hierarchy of authority.

Modern Science

A systematic enterprise that builds and organizes knowledge in the form of testable explanations and predictions about the universe.