In Most Cases It Will Save Money for Consumers to Select

question 62

Multiple Choice

In most cases it will save money for consumers to select their loans based on the lowest:

• A)Annual percentage rate
• B)Effective annual rate
• C)Number of compounding periods per year
• D)Simple interest rate

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Definitions:

Liquidation

The process of converting assets into cash, often associated with dissolving a business and distributing its assets to claimants.

Homestead Cap

The homestead cap is a legal provision that limits the annual increase in valuation of a homestead property for property tax purposes.

Aggregate Interest

The total amount of interest payable or receivable over the life of a loan or investment.

Convicted

A legal finding that someone is guilty of a crime after a trial or through a guilty plea.