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How is simple interest calculated?
OA. It is calculated on the principal amount of the loan.
OB. It is calculated on the
collateral on the loan.
OC. It is calculated on the annual percentage yield.
OD. It is calculated on the compound interest of the loan.

Sagot :

Anthougoidn

Simple interest is calculated in this way: A. It is calculated on the principal amount of the loan.

What is simple interest?

Simple interest is the type of interest that does not compound and is calculated on the principal portion of a loan.

The formula for computing simple interest is Principal x APR x Number of years.

For example, the simple interest of $100,000 at 2% APR for 2 years is $4,000.

Thus, simple interest is calculated in this way: A. It is calculated on the principal amount of the loan.

Learn more about simple interests at https://brainly.com/question/25793394

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