Interest calculated only on the amount borrowed is referred to as:
A)compound interest
B)risk-free interest
C)inflation interest
D)simple interest

Question

Quizplus · Accepted Answer

Simple interest is calculated only on the amount borrowed, without any additional compounding. Compound interest refers to interest that is calculated on both the principal amount and any accumulated interest, while risk-free interest and inflation interest refer to different types of interest rates.

Interest Calculated Only on the Amount Borrowed Is Referred to As