Simple interest is based on the principal amount of a loan or the first deposit in a savings account. Simple interest doesn't compound, which means a creditor will only pay interest on the principal amount and a borrower would never have to pay more interest on the previously accumulated interest.
interest paid on the principal amount and a borrower would never have to pay more interest on the previously accumulated interest...is known as simple interest ..
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Answer:
Simple interest is based on the principal amount of a loan or the first deposit in a savings account. Simple interest doesn't compound, which means a creditor will only pay interest on the principal amount and a borrower would never have to pay more interest on the previously accumulated interest.
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Answer
interest paid on the principal amount and a borrower would never have to pay more interest on the previously accumulated interest...is known as simple interest ..
Formula
[tex] = > \frac{p \times r \times t}{100} [/tex]