Author Question: Given an identical contract rate, which of the following methods for determining finance charges ... (Read 35 times)

sheilaspns · **on:** Jul 11, 2018

Given an identical contract rate, which of the following methods for determining finance charges provides the smallest monthly payment on an installment loan?

A)

Simple interest method
B)

Discount method
C)

Add-on method
D)

The monthly payment is the same under all three methods listed above.

Question 2

A cash management strategy does not involve which of the following activities?

A)

Deciding to your satisfaction what future interest rates will be
B)

Balancing your desires for safety, liquidity, and yield
C)

Obtaining information about alternative deposit accounts
D)

Keeping as little cash as possible