Using the ____________ would be least expensive for the borrower when determining the total amount to be paid to the lender.
A)simple interest method
B)add-on interest method
C)discount method
D)sum-of-the-digits method

Question

Using the ____________ would be least expensive for the borrower when determining the total amount to be paid to the lender. ​
A)simple interest method
B)add-on interest method
C)discount method
D)sum-of-the-digits method

Quizplus · Accepted Answer

The simple interest method calculates interest only on the principal amount, making it generally less expensive than other methods that may calculate interest on the total amount or include additional fees.

Using the ____________ Would Be Least Expensive for the Borrower