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2 years ago

How is simple interest calculated?

Business

1 answer:

erma4kov [3.2K]2 years ago

4 0

Simple interest is calculated in this way: A. It is calculated on the principal amount of the loan.

<h3>What is simple interest?</h3>

Simple interest is the type of interest that does not compound and is calculated on the principal portion of a loan.

The formula for computing simple interest is Principal x APR x Number of years.

For example, the simple interest of $100,000 at 2% APR for 2 years is $4,000.

Thus, simple interest is calculated in this way: A. It is calculated on the principal amount of the loan.

Learn more about simple interests at brainly.com/question/25793394

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