Installment Loans Using the Simple Interest Method

question 124

Multiple Choice

Installment loans using the simple interest method

• A)have the highest finance charges of any method.
• B)have interest charged only on the monthly loan balance.
• C)do not have balloon payments.
• D)have a lower APR than the stated interest rate.
• E)have a higher APR than the stated interest rate.

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Definitions:

DSM-IV-TR

The Diagnostic and Statistical Manual of Mental Disorders, Fourth Edition, Text Revision; a guide used by healthcare professionals to diagnose mental disorders.

American Psychiatric Association

A professional organization of psychiatrists aimed at advancing the understanding and treatment of mental disorders.

Diagnostic

Pertaining to the identification of the nature or cause of a health problem, often involving analysis of symptoms and tests.

Psychological Disorders

Mental disorders characterized by dysfunctions in cognition, emotions, or behavior, significantly impacting daily life.