Question

When interest is charged on a deficiency, any part of a month counts as a full month.
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Answer 1

This statement is true. When interest is charged on a deficiency, any part of a month counts as a full month. For example, if you have a balance for only 15 days in a month, you will be charged interest for the entire month.

Step-by-step explanation:

In the context of interest charged on a deficiency, if any part of a month is counted as a full month, it means that even if you have a balance for a fraction of a month, you will be charged interest for the entire month.

For example, let's say you have a loan with an annual interest rate of 12%. If your loan balance is $1,000 and you have an outstanding balance for only 15 days in a month, the interest charged for that month would be calculated as follows:

1. Calculate the daily interest rate: 12% / 365 = 0.0329% per day
2. Calculate the interest for the 15 days: 0.0329% * $1,000 * 15 = $49.35
3. Since any part of a month counts as a full month, the interest charged for that month would be $49.35.