If the Discount Method Is Used to Calculate a Finance

question 1

Multiple Choice

If the discount method is used to calculate a finance charge of $250.60 on a $2,400 loan, the amount to be:

• A)repaid is $2,400.
• B)disbursed to the borrower is $2,400.
• C)repaid is $2,650.60.
• D)disbursed to the borrower is $2,650.60.
• E)repaid is $2,149.40.

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Definitions:

Two-Factor Theory

A psychological theory that posits emotions are based on physiological arousal and cognitive label.

Cognitive Appraisal

A process by which an individual evaluates and interprets a situation or event, determining its significance and the response it requires.

Physical Arousal

A physiological response of the body that prepares it for action, characterized by increased heart rate, breathing, and blood pressure, often triggered by stress, excitement, or exercise.

Spillover Effect

The phenomenon in which feelings, attitudes, or behaviors in one area of one's life transfer to, or influence, another.