If Ash Borrows Money to Buy a Car, Her Car

question 8

Multiple Choice

If Ash borrows money to buy a car, her car loan will be regulated by:

• A)The law of torts.
• B)Consumer credit law.
• C)Criminal law.
• D)Intellectual property law.

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Definitions:

Compounded Monthly

Compounded monthly refers to the process of calculating interest on the principal and previously earned interest on a monthly basis.

Car Loan

A financial loan specifically used to purchase a car, typically secured against the vehicle itself and paid back over a set period.

First Payment

The initial payment made in a series of payments, commonly referring to the first installment of a loan or lease.

Compounded Semi-Annually

Calculation of interest where the amount is recalculated and added to the principal every six months.