You Want to Borrow $1,000 at an Interest Rate of 10

question 70

Multiple Choice

You want to borrow $1,000 at an interest rate of 10%. The most expensive method of calculating the dollar cost of the interest on the installment loan will be the:

• A) add-on method.
• B) double-declining-balance method.
• C) discount method.
• D) simple interest method.
• E) past-due balance method.

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Definitions:

Resilience

The capacity to recover quickly from difficulties; toughness or adaptability in facing challenges.

Attitude

A settled way of thinking or feeling about someone or something, typically reflected in a person’s behavior.

Empathetic

The ability to understand and share the feelings of another person from their perspective.

Impulse Control

The capacity to manage and restrain sudden desires or urges to act, thereby demonstrating self-discipline and decision-making skills.