What type of interest is calculated on the balance of the principal only?
A)Equivalent interest
B)Compound interest
C)Future interest
D)Simple interest

Name: What type of interest is calculated on the balance of the principal only? A)Equivalent interest B)Compound interest C)Future interest D)Simple interest
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Question

Quizplus · Accepted Answer

Simple interest is calculated only on the principal amount and does not consider any accrued interest. Therefore, it is the only choice that fits the given description.

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