13. which type of interest matches this definition: interest that creditors add each year based on your…

13. which type of interest matches this definition: interest that creditors add each year based on your principal balance? simple interest compound interest variable interest all of the above 14. when is advertising generally considered deceptive under federal law? it involves an omission that causes a false belief about the product. consumers would have chosen differently if there had not been deception. someone has been or is likely to be harmed as a result of the deception. all of the above. 15. which type of loan should be avoided because of its unusually high interest rates? payday loan secured bank loan secured credit union loan unsecured bank loan

13. which type of interest matches this definition: interest that creditors add each year based on your principal balance? simple interest compound interest variable interest all of the above 14. when is advertising generally considered deceptive under federal law? it involves an omission that causes a false belief about the product. consumers would have chosen differently if there had not been deception. someone has been or is likely to be harmed as a result of the deception. all of the above. 15. which type of loan should be avoided because of its unusually high interest rates? payday loan secured bank loan secured credit union loan unsecured bank loan

Answer

Brief Explanations:

  1. Simple - interest is calculated based on the principal balance only. Compound - interest is based on principal plus accumulated interest. Variable - interest rate can change. The description matches simple interest.
  2. Under federal law, advertising is deceptive if it has an omission causing a false belief, if consumers would have chosen differently without deception, or if someone is or is likely to be harmed by the deception.
  3. Payday loans are known for their extremely high - interest rates compared to other types of loans like secured bank/credit union loans and unsecured bank loans.

Answer:

  1. simple interest
  2. All of the above
  3. payday loan