Knock out the interest myths

Exercise and reference answers

Questions

1. Question

   Three of these claims about interest are false.

   Choices

   1. Item

      CI grows on the previous year's amount

      Correct

      Yes

   2. Explanation

      Simple interest stays on the original principal

      Item

      Simple interest also compounds yearly

   3. Explanation

      She would pay 128 MORE under compound interest

      Item

      Heena paid 128 less under compound

   4. Explanation

      Discount is a reduction on the marked price

      Item

      Discount is a kind of interest

Instructions

Tap each claim you can prove false. The true one stays put.

Explanation