When the Simple Interest Method Is Used to Determine Finance

question 2

Multiple Choice

When the simple interest method is used to determine finance charges, the interest is calculated based on the:

• A) future value of the installments.
• B) average outstanding balance.
• C) actual balance of the loan.
• D) present value of all finance charges.
• E) future value of all finance charges.

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Definitions:

Society's Norms

The expected patterns of behavior and belief that are accepted and enforced by a group or society.

Property Rights

Legal rights to possess, use, and dispose of assets including real estate, personal property, and intellectual property.

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A process by which individuals reflect on, articulate, and align their personal values with their actions and decisions.

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The process of teaching individuals, especially children and adolescents, about the values and ethical conduct considered desirable in a given society.