Asked by Emily Treadaway on May 04, 2024
Verified
Interest earned only on the original principal amount invested is called _____ interest.
A) Free.
B) Annual.
C) Simple.
D) Interest on.
E) Compound.
Simple Interest
A method of calculating the interest charge on a loan or financial product based on the original principal amount and the interest rate over a period of time.
Principal Amount
This is the original sum of money borrowed in a loan or put into an investment, not including any interest or dividends.
Invested
Describes the act of allocating resources, usually money, into something to earn income or gain profits.
- Apprehend the core principles of compound interest and its variance from simple interest.
Verified Answer
MP
Martha PierreMay 09, 2024
Final Answer :
C
Explanation :
Simple interest is calculated only on the original principal amount, not on the interest accrued over time.
Learning Objectives
- Apprehend the core principles of compound interest and its variance from simple interest.