True or false: simple interest

Exercise and reference answers

Questions

1. Statement is true

   Yes

   Statement

   Simple interest is the same for each year.

2. Statement is true

   Yes

   Statement

   It is always calculated on the original principal.

3. Statement is true

   No

   Statement

   It grows year on year like compound interest.

4. Statement is true

   Yes

   Statement

   Amount equals principal plus interest.

5. Statement is true

   Yes

   Statement

   Doubling the years doubles the simple interest.

Explanation