A Method of Calculating Interest in Which,during the Entire Term

question 5

Multiple Choice

A method of calculating interest in which,during the entire term of the loan,interest is computed on the original sum borrowed is the:

• A)present value method.
• B)simple interest method.
• C)compound interest method.
• D)interest rate method.

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Definitions:

Lease

A contract by which one party conveys land, property, services, or the use of assets to another party for a specified time, in return for a periodic payment.

Personal Property

Tangible and intangible assets owned by an individual or business that are not permanently attached to or part of real estate.

Tangible

Objects or assets that have a physical form and can be touched, as opposed to intangible assets like intellectual property.

Bills of Lading

Official documents issued by a carrier to acknowledge receipt of cargo for shipment, detailing the terms of the carriage.