Add-On Interest refers to a loan interest calculation method where the interest is added to the principal amount at the start of the loan. The total loan repayment amount is then divided into equal installment payments.
The annual percentage rate (APR) represents the annualized cost of borrowing or the annual rate of return on an investment, incorporating interest rate and all associated fees.
Annual Percentage Rate (APR) is a measure of the cost of borrowing, expressed as a yearly interest rate. It includes interest as well as other fees and charges for a loan.
Regulation Z is a body of regulations promulgated by the Federal Reserve Board pursuant to the federal Truth in Lending Act (TILA), ensuring that borrowers are informed of the terms of credit, including the Annual Percentage Rate (APR) and the total cost of credit.
