When the Simple Interest Method Is Used to Determine Finance

question 22

Multiple Choice

When the simple interest method is used to determine finance charges,the interest is calculated based on the:

• A) future value of installments.
• B) average outstanding balance.
• C) actual balance of the loan.
• D) present value of all finance charges.
• E) none of these

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Definitions:

Apgar

A quick test performed on a newborn at 1 and 5 minutes after birth to assess the baby's heart rate, breathing, muscle tone, reflex response, and skin color.

Flexion

A movement that decreases the angle between two body parts, such as bending an elbow or knee.

Newborn

An infant from birth to about 2 months of age, during which period they undergo significant physiological adjustments outside the mother's womb.

Contraindications

Specific situations or conditions where a particular treatment, procedure, or activity is not advised because it may be harmful to the person.