Question

The amount of interest you pay does not depend on the method the lender uses to calculate interest.

True or False

Answer 1

False any method will give the same amount

Answer 2

FALSE

Explanation:

The amount of interest paid depends on the method adopted by the lender. There are several methodologies for applying interest, so that each sector will adhere to the most convenient modality. The interest paid by you will be the result of this choice and may for example have a daily, monthly, semi-annual or annual impact. Obviously all interest charged must be clearly described in a contract and must be considered legal in the state legal apparatus.