Simple interest applies when a loan is repaid:
A) for a credit card debt
B) as an installment
C) after more than one interest period
D) in a lump sum

Name: Simple interest applies when a loan is repaid: A) for a credit card debt B) as an installment C) after more than one interest period D) in a lump sum
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Question

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Simple interest is typically applied to the principal amount of a loan or deposit and is calculated on a lump sum payment, not on a revolving credit like a credit card or on installment payments.

Simple Interest Applies When a Loan Is Repaid