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  • A form of interest that is calculated only on the princip...
Multiple choice

A form of interest that is calculated only on the principal amount of a loan. 

  1. Investment interest

  2. Simple Interest

  3. Compound Interest

  4. Diversified Interest

Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Simple interest is calculated exclusively on the original principal amount of a loan. Compound interest is the opposite, as it includes interest on previously earned interest.

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