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If interest on a bank loan is determined by multiplying the interest rate by the original principal, ignoring the effects of compounding, the loan is

If interest on a bank loan is determined by multiplying the interest rate by the original principal, ignoring the effects of compounding, the loan is most likely a:

Question options:

1)

simple interest loan

2)

discount interest loan

3)

add-on interest loan

4)

an adjustable rate loan

5)

mortgage loan

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