What type of interest is calculated on the balance of the principal only?
A) equivalent interest
B) compounded interest
C) future interest
D) simple interest

Question

Quizplus · Accepted Answer

Simple interest is calculated only on the principal amount, without taking into account any accumulated interest. This means that the amount of interest paid remains the same throughout the entire term of the loan or investment.

What Type of Interest Is Calculated on the Balance of the Principal