Simple interest is calculated on:
AThe amount budgeted
BThe amount bargained
CThe amount balanced
DThe amount borrowed
Answer & Solution
Correct answer: D. The amount borrowed
1. Nothing is added to the base as time passes.
2. That is what makes it simple.
3. It is calculated on the amount borrowed only.
_Source: OpenStax 'Contemporary Mathematics', Ch 6 'Money Management' (CC BY)_
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