Answers2027 Ignite Financial Literacy-Personal Finance - EL3403Credit and LoansQuestion 1
1
QuizMultiple Choice

Credit and Loans

Question 1 • 2027 Ignite Financial Literacy-Personal Finance - EL3403

Which describes the difference between simple and compound interest?

Answer
A
Simple interest is paid on small, short-term loans, while compound interest is paid on large, long-term loans.
B
Simple interest is paid on the principal, while compound interest is paid on the principal and interest accrued.
C
Simple interest is paid on large, long-term loans, while compound interest is paid on small, short-term loans.
D
Simple interest is paid on the principal and interest accrued, while compound interest is paid only on the principal.
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