Q. Which of the following is a correct property of simple interest?

  • (A) Interest each year is calculated on the original principal only.
  • (B) Interest is calculated on principal plus previous interest each year.
  • (C) Interest increases exponentially with time.
  • (D) Rate has no effect on simple interest.
✅ Correct Answer: (A) Interest each year is calculated on the original principal only.
Explanation: Correct: in simple interest yearly interest = (P×R)/100 and does not include previous interest. Option2 describes compound interest; Option3 is false for SI; Option4 is false because rate directly affects SI.

Published by Mr. Dubey ⭐ 111.22K Points at 05-Dec-2025 01:44 pm in Math

Explanation by: Mr. Dubey
Correct: in simple interest yearly interest = (P×R)/100 and does not include previous interest. Option2 describes compound interest; Option3 is false for SI; Option4 is false because rate directly affects SI.

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