Although seldom seen in the U.S., discount method loans are still quite popular in Latin America.

Question

Quizplus · Accepted Answer

Discount method loans, where the interest is deducted from the loan amount at the beginning rather than being paid regularly or at the end, are indeed more common in some regions outside the U.S., including Latin America. This method allows borrowers to know the exact amount they need to repay from the start.

Although Seldom Seen in the U