The APR is larger when money is lent under the discount method than when it is lent under the simple interest method.

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The discount method is a method of calculating the interest rate on a loan where the interest is deducted upfront from the amount lent. This means that the borrower receives less money than the face value of the loan, and the APR (annual percentage rate) is therefore higher. In contrast, the simple interest method adds interest to the principal in regular intervals, which results in a lower APR.

The APR Is Larger When Money Is Lent Under the Discount