Question: You borrow $ 4 , 2 3 1 to improve the patient transfer equipment in your clinics. Your interest rate is 4 . 1 5

You borrow $4,231 to improve the patient transfer equipment in your clinics. Your interest rate is 4.15% for 5 years. You are presented with two options to repay the loan interest. One that will be calculated on the $4,231 borrowed and a second one that will be based on the accrued interest on the 5% annual interest
What type of interest is the second loan option based on?

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