Asked by jordan lewis on May 09, 2024
Verified
Interest earned only on the original principal amount invested is called _______________.
A) Free interest.
B) Annual interest.
C) Simple interest.
D) Interest on interest.
E) Compound interest.
Simple Interest
Interest assessed only on the principal sum, or on the part of the principal that still needs to be repaid.
Principal Amount
The original sum of money borrowed in a loan or invested, distinct from interest or profit earned.
Invested
To be invested refers to the allocation of resources, such as capital or time, into a particular venture, asset, or effort with the expectation of generating a future return.
- Gain insight into the basic concepts of compound interest and how it is different from simple interest.
Verified Answer
DC
DANTE CUEVASMay 12, 2024
Final Answer :
C
Explanation :
Simple interest is calculated only on the original principal amount, not on the interest accrued over time.
Learning Objectives
- Gain insight into the basic concepts of compound interest and how it is different from simple interest.