Which One of These Methods Is the Fairest of Calculating

question 14

Multiple Choice

Which one of these methods is the fairest of calculating interest?

• A)declining balance
• B)adjusted balance
• C)average daily balance excluding purchases
• D)average daily including purchases method
• E)previous balance method

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Definitions:

Incapacity

The inability to comprehend or manage one's own affairs due to mental deficiency or a similar condition.

Disaffirmance

The legal right or act of renouncing or rejecting a contract or agreement, particularly used in reference to minors' agreements.

Depreciated

The decrease in an asset's value over time due to wear and tear, obsolescence, or market conditions.

Necessary Item

Items considered essential for the well-being of a person, often used in legal contexts regarding support obligations.