Which of the Following Statements Is (Are)true with Respect to Simple

question 15

Multiple Choice

Which of the following statements is (are) true with respect to simple interest loans repaid by a series of partial payments?
(I) Using the Declining Balance Method,a partial payment is not deducted from the outstanding balance at the time the partial payment is made if the partial payment is greater than the interest due at the time.
(II) The total interest paid over the term of the loan will be the same under the Merchant's Rule and the Declining Balance Method.

• A)Both are true
• B)(I)only
• C)(II)only
• D)None are true

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Definitions:

Binding Price Ceiling

A Binding Price Ceiling is a government-imposed limit on the price charged for a product or service that is set below the market equilibrium, leading to shortages.

Treadmills

Exercise equipment designed for walking or running in place, often used in fitness routines to improve cardiovascular health.

Shortage

An occurrence in which the need for a particular product or service surpasses the available amount in the market.

Binding Price Ceiling

A legally imposed price limit that is set below the equilibrium price, leading to a shortage as demand exceeds supply at that price level.