The interest that would be paid only on the initial borrowed or deposited amount is
A) initial interest.
B) simple interest.
C) compound interest.
D) present value interest.

Question

Quizplus · Accepted Answer

Simple interest refers to the interest that is calculated only on the initial borrowed or deposited amount, without taking into account any interest that may have accrued over time. It is calculated as a percentage of the principal amount and is typically used in situations where the interest rate is fixed and the loan or investment period is relatively short.

The Interest That Would Be Paid Only on the Initial