What factors determine the amount of interest earned on a fixed principal? Choose the correct answer below. A. The effective rate B. The number of years C. The principal or present value D. The interest rate and the number of compounding periods

Fixed principal is the amount of money which is a payment loan and has a reducing payment amount. It is typical loan, which has level of periodic payment, interest portion of the payment which is less every period because of reducing principal balance and the principal portion of the payment is the same payment to payment.

Therefore, the factors which determine the amount are the number of the compounding periods or years and the interest rate.

What factors determine the amount of interest earned on a fixed​ principal? Choose the correct answer below. A. The effective rate B. The number of years C. The principal or present value D. The interest rate and the number of compounding periods

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What factors determine the amount of interest earned on a fixed principal? Choose the correct answer below. A. The effective rate B. The number of years C. The principal or present value D. The interest rate and the number of compounding periods