Unlike the APR method for calculating consumer loan rates,the simple interest approach adjusts for the length of time a borrower actually has use of the credit.

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The simple interest approach does not adjust for the length of time a borrower actually has use of the credit; it calculates interest based solely on the principal balance, interest rate, and time period, without considering compounding or other factors like fees or how the balance might change over time.

Unlike the APR Method for Calculating Consumer Loan Rates,the Simple