5 Questions
Simple interest is calculated on the initial principal only.
True
Compound interest is paid on the principal amount borrowed.
False
Unpaid simple interest is subtracted from the principal.
False
Compound interest is a type of simple interest.
False
The principal amount borrowed determines the simple interest.
True
Understand the difference between simple and compound interest, how they are calculated and how they affect the principal amount. Learn when to use each type of interest and how to apply them in real-world scenarios.
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