Q. Which of the following is a correct property of 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.
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.