The interest rate which will save the most money if the balance on a loan from one month to the next is carried is the compound interest rate.
What is compound interest?
Compound interest is the amount charged on the principal amount and the accumulated interest with a fixed rate of interest for a time period.
The formula for the final amount with the compound interest formula can be given as,
[tex]A=P\times\left(1+\dfrac{r}{n\times100}\right)^{nt}\\[/tex]
Here, A is the final amount (principal plus interest amount) on the principal amount P of with the rate r of in the time period of t.
While carrying the balance on a loan from one month to the next month, the compound interest rate is better, as it allows the funds to grow faster than the other rate mentioned.
Thus, the interest rate which will save the most money if the balance on a loan from one month to the next is carried is the compound interest rate.
Learn more about the compound interest here;
https://brainly.com/question/24274034
