Interest Earned Only on an Investment's Principal or Original Amount

question 51

Multiple Choice

Interest earned only on an investment's principal or original amount is referred to as:

• A) simple interest
• B) compound interest
• C) discount interest
• D) annuity interest

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Definitions:

Modified Comparative

A legal doctrine used in some jurisdictions for determining damages and liability based on the degree of fault of each party.

Assumption Of Risk

A legal doctrine that a person may not recover for an injury received when they voluntarily expose themselves to a known danger.

Voluntarily

Voluntarily refers to actions taken out of one's own free will without coercion or obligation from external forces.

Unreasonably

Acting without regard to what is fair, proper, or logical, often leading to harm or injustice.