If a bank charges you interest up front then this loan is called a _________ loan
A)compounded.
B)simple interest.
C)discount.
D)add-on.
E)installment.

Question

Quizplus · Accepted Answer

When a bank charges interest up front, the loan is referred to as a "discount" loan. This means the interest is calculated and deducted from the principal at the beginning of the loan term, so the borrower receives the net amount after the interest has been subtracted.

If a Bank Charges You Interest Up Front Then This