The advantage when using ordinary interest belongs to the:
A) investor
B) lender
C) both borrower and investor
D) borrower

Question

Quizplus · Accepted Answer

The advantage of using ordinary interest belongs to the lender because the interest is calculated based on the original amount borrowed, without taking into account any additional payments made by the borrower. This means that the lender collects more interest over the life of the loan compared to using compound interest, which takes into account any payments made and reduces the total amount owed.

The Advantage When Using Ordinary Interest Belongs to The