Question

which type of interest will cost you more when you take out a loan?
simple
compound
fixed
using a paced model, a final decision is made by
matching alternatives with criteria when indicated
finding the alternative with the most matching criteria

Explanation:

• First question: Compound interest is calculated on the initial principal and also on the accumulated interest of previous periods. So, over time, it costs more than simple interest (which is only on the principal) and fixed (which is a type of simple interest rate structure).
• Second question: In the PACED model (Problem, Alternatives, Criteria, Evaluation, Decision), the final decision is made by finding the alternative that has the most matching criteria.

Answer:

• First question: B. compound
• Second question: Finding the alternative with the most matching criteria.