If the Add-On Method Is Used to Calculate a Finance

question 21

True/False

If the add-on method is used to calculate a finance charge of $100.80 on a $1,800 loan,the amount to be repaid is $1,900.80.

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Definitions:

Fundamental Attribution Errors

A cognitive bias where individuals overemphasize personal characteristics in explaining others' behavior neglecting situational factors.

Public Policy Reasons

Justifications or rationales based on the public good or societal interests that guide or influence legislative, governmental, or organizational decisions.

Disaffirm

The act of rejecting or renouncing a contract or agreement, particularly by a minor who is not legally bound by contracts.

Life Insurance

A contract between an insurer and a policyholder where the insurer pledges payment of a death benefit to named beneficiaries upon the death of the insured.