Explain the Meaning of the "Effective Interest Method

question 118

Essay

Explain the meaning of the "effective interest method."

---

Definitions:

Federal Administrative Agency

A body established by Congress that implements and enforces laws and regulations within a specific jurisdiction or area of federal responsibilities.

Interstate Commerce Commission

A regulatory agency in the United States created by the Interstate Commerce Act of 1887, originally tasked with regulating the railroads to ensure fair rates and to regulate other modes of transport.

Rule Making

The process by which government agencies formalize and enact regulations or standards that govern behavior within specific industries or areas.

Legislative Authority

The power vested in a legislative body to enact laws, amend them, and repeal them.