Interest that is calculated as a simple percentage of the original principal amount is called ?
Correct answer: D. Simple interest
- A. Market interest
- B. Easy interest
- C. Compound interest
- D. Simple interest
Explanation
Simple interest is calculated only on the original principal, using the formula principal multiplied by rate and time. Compound interest also includes interest accumulated in earlier periods.
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Individual consumers, firms and markets are examined through demand and supply, elasticity, consumer choice, production, costs, revenue and the determination of prices and output. The topic also covers market structures such as perfect competition, monopoly and oligopoly, plus market failure, externalities and the distinction between microeconomic decisions and economy-wide outcomes.
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