Payments on an Installment Note Normally Include the Accrued Interest

question 216

True/False

Payments on an installment note normally include the accrued interest expense plus a portion of the amount borrowed.

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Definitions:

Usury Statute

Laws that set the maximum interest rates that can be charged on loans.

Maximum Rate

The highest allowable interest rate or charge on a loan or financial contract as specified by law.

Covenant Not to Compete

A clause in an employment or business agreement that prohibits one party from competing against another for a certain period and in a specific geographic area.

Reasonableness

A standard of fairness, appropriateness, and rationality often used in legal and ethical judgments.