Calculating Interest Using the ____________ Will Result in the Highest

question 45

Multiple Choice

Calculating interest using the ____________ will result in the highest APR on a single-payment loan. ​

• A)double declining balance method
• B)discount method
• C)average loan balance method
• D)simple interest method

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Definitions:

Tax

A mandatory financial charge or some other type of levy imposed upon a taxpayer by a governmental organization in order to fund government spending and various public expenditures.

Utility Function

A rephrased definition: A tool in economics to quantify an individual's satisfaction from consuming different bundles of goods and services.

Price

The sum of money needed to buy a product or service.

Utility Function

A mathematical representation expressing an individual's preference ordering over a set of goods and services, showing the level of satisfaction or utility derived from various bundles of goods.