If the interest rates are the same, a loan using add-on interest will have higher payments and charges than a loan using simple interest.

Question

Quizplus · Accepted Answer

In an add-on interest loan, interest is calculated on the original principal for the entire loan period and added to the principal upfront, leading to higher overall payments and charges compared to a simple interest loan, where interest is calculated periodically on the outstanding balance.

If the Interest Rates Are the Same, a Loan Using