Q491
Interest rate which is not reinvested but is earned is classified as
A.
invested interest
B.
simple interest
AnswerC.
earned interest
D.
unstated interest
Answer: Option B
Solution
Answer: Option B
Solution:
Interest rate which is not reinvested but is earned is classified as simple interest. An interest rate is the amount of interest due per period, as a proportion of the amount lent, deposited or borrowed.