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If the Add-On Method Is Used to Calculate a Finance

question 21

True/False

If the add-on method is used to calculate a finance charge of $100.80 on a $1,800 loan,the amount to be repaid is $1,900.80.


Definitions:

Newly-formed Corporation

A business entity that has been recently established and registered as a corporation, initiating its legal and operational activities.

Debt

Money owed by one party to another under conditions that require repayment, often including interest.

Tax Liability

The total amount of tax owed to tax authorities after all credits and deductions have been applied to gross income.

Taxable Income

The portion of income used to calculate how much the income tax is owed to the government, after exemptions and deductions are factored in.

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