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

question 17

Multiple Choice

If the add-on method is used to calculate a finance charge of $150.80 on a $2,200 loan, the amount to be:

• A)repaid is $2,200.
• B)disbursed to the borrower is $2,049.20.
• C)repaid is $2,350.80.
• D)disbursed to the borrower is $2,350.80.
• E)disbursed to the borrower is $150.80.

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Definitions:

Distributive Justice

The perceived fairness of how rewards and benefits are distributed among members of a group or society.

Equitable Policy

A policy that aims to ensure fairness and justice within the procedures, processes, and distribution of resources by an organization or government.

Moral-Rights View

Considers ethical behaviour as that which respects and protects the fundamental rights of people.

Organisational Protection

Measures and strategies implemented to safeguard an organization's assets, reputation, and well-being from potential threats.