When more than one payment is made on a simple interest loan,the method of computing interest is known as the:
A)add-on interest method.
B)average daily balance method.
C)adjusted balance method.
D)declining balance method.
E)previous balance method.

Question

Quizplus · Accepted Answer

The declining balance method calculates interest on the remaining balance of the loan after each payment, which is typical for loans with multiple payments.

When More Than One Payment Is Made on a Simple