Question

A method of calculating the balance on which interests is paid by summing the outstanding balances owed each day during the billing period dividing by the number of days in the period. This concept is known as?

Group of answer choices

Average Daily Balance Method

Method Balancing

Previous Balance

Annual Balancing

Maddie had a line of credit that she used and than paid it back at whatever pace she wanted as long as she paid a minimum amount each month, paying interest on the unpaid balance. This concept is known as?

Group of answer choices

Installment Credit

Demand Deposit Account

Interest Accounting

Open Credit or Revolving Credit

What is the true simple interest paid over the life of the loan. It’s a reasonable approximation of the true cost of borrowing, and the Truth-In-Lending Act requires that all consumer loan agreements disclose the APR in bold print. What concept is this known as?

Group of answer choices

Annual Percentage Rate (APR)

Annual Fee

Merchant Fee

Interest Payments

Answer 1

I have answered the question below

Please up vote for the same and thanks!!!

Do reach out in the comments for any queries

Answer:

1)

Average Daily Balance Method s a common accounting method that calculates interest charges by considering the balance invested or owed at the end of each day of the billing period

2)

open or revolving credit is a line of credit that you can use and then pay back at whatever pace you like so long as you pay a minimum balance

3)

The true simple interest rate paid over the life of the loan. It's a reasonable approximation for the true cost of borrowing is the APR