In Order for a Loan to Come Within the Scope

question 4

Multiple Choice

In order for a loan to come within the scope of the Truth in Lending Act,________.

• A)the credit or loan must be subject to a finance charge
• B)the credit or loan must have repayments of more than four installments
• C)the credit or loan must have an interest rate of over 5%
• D)the credit or loan must be subject to a finance charge,the credit or loan must have repayments of more than four installments,and the credit or loan must have an interest rate of over 5%
• E)the credit or loan must be subject to a finance charge or have repayments of more than four installments,but there is no requirement that the loan have an interest rate of over 5%

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Definitions:

Like Terms

Terms in algebra that have the same variables raised to the same power, which can be combined algebraically.

Simplify

The process of making something less complex or easier to understand, often applied to mathematical expressions or procedures.

Simplify

To reduce something to its most basic or uncomplicated form, making it easier to understand or deal with.

R

Often used as a symbol representing the interest rate or rate of return in financial equations.