Finance
In South Dakota, interest is typically calculated on mortgage loans using which method?
AAdd-on interest (all interest charged upfront)
BSimple interest on the outstanding balance✓ Correct
CCompound interest compounded daily
DFlat annual fee regardless of balance
Explanation
Mortgages use simple interest on the outstanding loan balance, calculated monthly. As the principal balance decreases through amortization, the interest portion of each payment decreases.
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