Which of the following describes interest compound on the principle, excluding previously earned interest?
a- future value
b- present value
c- simple interest
d- compunding

Respuesta :

Answer:

c- simple interest

Explanation:

Simple interest is the interest attained on the principal amount only. It is expressed as a percentage of the principal amount. Because the principal amount does not change, and the interest rate remains constant, the simple interest amount is a constant figure throughout the investment life.

Simple interest contrast compound interest that earns interest on previously earned interest.

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