17
QuizMultiple Choice

Finance Charges

Question 17 • FowU - Financial Math - B

How is the daily balance method different from compounding interest daily?

Answer
A
Unlike daily compound interest, the daily balance method only applies charges at the end of the month.
B
The daily balance method rounds less frequently than daily compound interest.
C
The daily balance method checks your balance at the end of each day, but daily compound interest checks at the beginning of each day.
D
It is not different. The two processes are the same.
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