アドオン方ほう式しき

noun

add-on method; add-on interest

A method of calculating interest on a loan where the total interest is determined upfront based on the original principal, then divided into equal installments. Common in consumer finance.

• アドオン方ほう式しきで計けい算さんすると、実じっ質しつ金きん利りは表ひょう示じよりも高たかくなることがある。

  When calculated using the add-on method, the effective interest rate can be higher than the stated rate.