Under the Add-On Method for Determining Payments on a Consumer

question 130

Multiple Choice

Under the add-on method for determining payments on a consumer loan,

• A)service charges are added to the each monthly payment.
• B)a service charge for loan handling is added to the amount borrowed.
• C)interest is only added to the final monthly payment on the loan.
• D)interest is added to the amount financed in order to determine the total monthly payments.

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Definitions:

Psychological Care

Assistance and support provided to improve an individual's mental health and wellbeing, addressing psychological distress and disorders.

Rites of Passage

Ceremonies or rituals that mark important transitions or stages in a person's life, such as birth, puberty, marriage, and death.

Financial Provider

An individual or institution that supplies funds or economic support to others.

Parental Support

The assistance and guidance parents provide to their children for emotional, physical, and financial needs.