BUSINESS ADMINISTRATION
BUSINESS MATHEMATICS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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In the absence of stipulation to the contrary, a stated rate of interestis understood to be ____
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Daily basis
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Monthly basis
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Quarterly basis
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Per annum/ annual basis
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Explanation:
Detailed explanation-1: -Rate of interest in the absence of stipulation. The rate of interest for the loan or forbearance of any money, goods or credits and the rate allowed in judgments, in the absence of expressed contract as to such rate of interest, shall be six percent (6%) per annum.
Detailed explanation-2: -There is no such cap. Once you execute an agreement or promissory note wherein you agree to repay the loan at a particular rate of interest you are bound by it. As per money lending act, interest on loans cannot be charged exorbitantly. The normal interest that shall be chargeable shall restrict to 24% pa.
There is 1 question to complete.