Installment Loans Using the Simple Interest Method

question 124

Multiple Choice

Installment loans using the simple interest method

• A)have the highest finance charges of any method.
• B)have interest charged only on the monthly loan balance.
• C)do not have balloon payments.
• D)have a lower APR than the stated interest rate.
• E)have a higher APR than the stated interest rate.

---

Definitions:

Communications Gap

A discrepancy that arises when the message intended by the sender differs significantly from what is understood by the receiver.

Customer Expectations

Refers to the set of beliefs or standards that consumers have regarding products, services, or brand experiences.

Service Gaps Model

A framework identifying discrepancies between customer expectations and the actual services received.

Product Creation Process

Involves the steps and stages from conceiving a new product idea to the final launch and post-launch assessment in the market.