Question

What is the key feature of simple interest?

Answer 1

Answer:

When you make a payment on a simple interest loan, the payment first goes toward that month's interest, and the remainder goes toward the principal. Each month's interest is paid in full so it never accrues.

Step-by-step explanation:

Answer 2

When you make a payment on a simple interest loan, the payment first goes toward that month's interest, and the remainder goes toward the principal. Each month's interest is paid in full so it never accrues.