The Main Factor That Determines the Cost of a Line

question 152

Multiple Choice

The main factor that determines the cost of a line of credit is the ________,which is also considered the true simple interest rate paid over the life of the loan.

• A)annual merchant rate (AMR)
• B)teaser rate
• C)annual percentage rate (APR)
• D)penalty rate

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Definitions:

Law Application

involves the process of applying legal principles and rules to specific situations and cases.

Formed State

A term referring to a specific point in time when a state (in the context of a nation or territory) is officially established or constituted.

Cooperative

A business organization owned and operated by a group of individuals for their mutual benefit where members share in the decision-making process and profits.

Marketplace

A platform, location, or service where transactions between buyers and sellers are facilitated.