Which of the following methods calculates interest on the full amount of the original principal?
A)Declining balance method
B)Add-on interest method
C)Previous balance method
D)Adjusted balance method
E)Average daily balance method

Question

Quizplus · Accepted Answer

The add-on interest method calculates interest on the full amount of the original principal, regardless of any payments made over the term of the loan. This means the borrower pays interest on the entire original amount borrowed for the entire duration of the loan.

Which of the Following Methods Calculates Interest on the Full