The interest rate discount (Effective Rate) is the interest on a daily basis based on the principal balance, the actual. So when a borrower loan no matter the amount of the levy or, rather, it's that being reduced.
The interest rate is declining (Effective Rate) is the interest charged on the principal amount outstanding daily real. So, when the borrower does not repay the loan to the amount due or to make more loan principal reduced.
Interest rate and reduce the short-term (Effective Rate) is an interest on a daily basis according to the number of the principal"s real So, when the borrower loan payment whether gross charged or more will make the principal loan decreased.