What Type of Interest Is Calculated on the Balance of the Principal

question 34

Multiple Choice

What type of interest is calculated on the balance of the principal only?

• A)Equivalent interest
• B)Compound interest
• C)Future interest
• D)Simple interest

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Definitions:

Invoice

A document issued by a seller to a buyer that outlines the goods or services sold, their prices, and the payment terms.

Outstanding Balance

The amount of money owed that remains in a borrower's account, excluding interest and fees, that has not yet been paid.

Invoice

A document issued by a seller to a buyer, indicating items sold, prices, date of shipment, delivery and payment terms.

Payment

The act of giving money in exchange for goods or services.