You Are Considering Two Loans

question 85

Multiple Choice

You are considering two loans. The terms of the two loans are equivalent with the exception of the interest rates. Loan A offers a rate of 7.45% compounded daily. Loan B offers a rate of 7.5% compounded semi-annually. Loan _____ is the better offer because ______.

• A) A; you will pay less interest
• B) A; the annual percentage rate is 7.45%
• C) B; the annual percentage rate is 7.64%
• D) B; the interest is compounded less frequently
• E) B; the effective annual rate is 7.64%

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Definitions:

Moral Domains

Specific areas of moral judgment that distinguish between types of ethical or moral behavior.

Shweder

Richard A. Shweder, an anthropologist known for his work in cultural psychology and ethnopsychology, particularly regarding moral reasoning.

Competence Morals

Moral principles that emphasize the ethically correct way of acting in situations requiring skill, knowledge, and expertise.

Beliefs

Convictions or acceptance that certain things are true or real, often without empirical evidence.