When More Than One Payment Is Made on a Simple

question 7

Multiple Choice

When more than one payment is made on a simple interest loan,the method of computing interest is known as the:

• A)add-on interest method.
• B)average daily balance method.
• C)adjusted balance method.
• D)declining balance method.
• E)previous balance method.

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Definitions:

Faulty Perception

A situation where the perception of a stimulus does not match its physical reality, often leading to misunderstandings or cognitive biases.

Personal Distress

Negative feelings and emotions experienced by an individual, often in reaction to stress or suffering in their environment or themselves.

Socially Acceptable

Behaviors or actions that are considered appropriate and conform to the norms and expectations of a particular society or group.

Unusual

Not common, rare, or ordinary; something that deviates from what is typically expected or normal.