alleryStart learning →Simple interest is worked out on which amount?
AOnly the amount invested
BThe interest earned only
CThe interest and the rate
DThe number of years only
Answer & Solution
Correct answer: A. Only the amount invested
1. Interest is the money charged for borrowing money, or earned for lending it.
2. Simple interest is interest calculated only on the initial amount that you invested.
3. That opening balance is called the principal in financial calculations.
4. Interest already earned is never added to the principal under simple interest.
_Source: Siyavula Mathematics Grade 10 (Everything Maths, CC BY 4.0), Chapter 9: Finance and growth_
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