Interest added to the principal of a loan regardless of repayment of principal. The borrower pays interest on the full principal balance for the entire loan period, not on the declining balance, even though the principal balance is reduced each month as payments are made. Add-on interest is sometimes referred to as "block interest."
Related information about add-on interest:
- Add-On Interest Definition | Investopedia
A method of calculating interest whereby the interest payable is determined at the beginning of a loan and added onto the principal. The sum of the interest and ...
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Aug 15, 2011 ... Add On Interest Loan Calculator. Calculates add on interest loan payment and loan amount based on APR. Requires JavaScript.
- Add-On Interest: Definition from Answers.com
Add-on Interest Finance charges computed by adding the interest payable to the full amount of loan principal.
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4B Simple Add-On Interest. Interest is payment for the use of money. There are many ways of charging interest - the usual way is to ask for the original loan back ...
- add-on interest - Financial Dictionary - The Free Dictionary
A method of determining interest in which the interest is calculated as a percentage of the original principal. For example, if one borrows $10,000 at an annual ...
- add-on interest Definition | Business Dictionaries from AllBusiness ...
The add-on interest is added to the original principal amount, and becomes a part of the face amount of the promissory note. Computing interest due under the ...
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Sep 19, 2007 ... effective rate of interest, effective interest rate, interest method: Add-on interest When the add-on interest method is used, interest is calculated ...
- What is add-on interest? definition and meaning
Definition of add-on interest: Interest added to the principal of a loan regardless of repayment of principal. The borrower pays interest on the full principal ...