Respuesta :
Answer: C. Is charged only on the original amount borrowed
Explanation:
One major difference between compound interest and simple interest is is charged only on the original amount borrowed Option(c) is correct.
What is Simple interest?
Simple interest is the interest which is actually calculated by using only the principal amount balance of the loan actually at each period of the time as and when required.
Simple interest gradually or basically have the fixed value of the percentage or the principal amount which is actually borrowed and in the simple interest the value of the principal remain same all of the time which means it is same every year during that initial period of the time accordingly.
Simple interest usually includes the factor in the overall business transactions or the investments or the financial products which should be extended over the multiple period of the time as required in the question during which the interest is charged only on the principal amount only all of the time as it is required necessary.
Therefore Option(c) is correct.
Learn more about Simple interest here:
brainly.com/question/25845758
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