The most accurate method currently available for calculating the annual percentage rate (APR)on an add-on loan is the Rule of 78.

Question

Quizplus · Accepted Answer

The Rule of 78 is not the most accurate method for calculating the APR on an add-on loan. A better method is the Effective Interest Rate (EIR) method, which takes into account the time value of money and compounding periods. The Rule of 78 is an outdated method that was commonly used in the past but is now considered inaccurate and unfair to borrowers.

The Most Accurate Method Currently Available for Calculating the Annual