The fairest method of calculating the interest is the adjusted balance method.

Question

Quizplus · Accepted Answer

The fairest method of calculating interest is subjective and varies depending on the context and the parties involved. The adjusted balance method, which deducts payments made during the billing period before calculating interest, is one method among others like the average daily balance method or the previous balance method, each with its own advantages and disadvantages.

The Fairest Method of Calculating the Interest Is the Adjusted