An Implied Warranty

question 98

Multiple Choice

An implied warranty

• A)provides a written statement of manufacturer liability.
• B)states the bounds of coverage and,more important,areas of noncoverage.
• C)has no limits of noncoverage.
• D)assigns responsibility for product deficiencies to the manufacturer.
• E)assigns responsibility for product deficiencies on misuse to the consumer.

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Definitions:

Compounded Annually

A method of calculating interest where the interest rate is applied once per year, adding to the principal sum for the next period.

Equal Annual Payments

Regular payments of the same amount made over a specified period of time.

First Payment

The initial amount paid at the start of a payment plan or schedule, such as for a loan or lease.

Compounded Monthly

Compounded monthly refers to the process of calculating interest on the principal and previously earned interest on a monthly basis.