In Order to Charge Interest on Outstanding Accounts, the Method

Multiple Choice

In order to charge interest on outstanding accounts, the method of calculating the interest, as well as the total interest charged, administrative costs or other fees must be set out specifically in the contract. Which of the following statements is TRUE?

A) The total interest charged may not exceed 45% per annum.
B) Only the interest rate has to be stated for it to be a legal charge.
C) This is required for consumer transactions only
D) This is required for all contracts regardless of the parties.
E) The interest must be expressed in a monthly form totaling no more than 50% annum.