simple interest
It does not earn interest on prior interest. This topic is part of Finance within Government & Society. This page currently draws on 4 supporting questions, with answers and bonus facts available below.
simple interest trivia questions
Simple interest is calculated only on what?
Answer: Original principal
Bonus fact: It does not earn interest on prior interest.
What is the basic simple-interest formula?
Answer: I = PRT
Bonus fact: Interest equals principal times rate times time.
At 5% simple annual interest, $1,000 earns how much in one year?
Answer: $50
Bonus fact: Five percent of $1,000 is $50.
Which grows faster over long periods at the same stated rate, compound or simple interest?
Answer: Compound interest
Bonus fact: Interest-on-interest causes compounding.