Interest calculated solely on the principal is known as _ interest, whereas interest calculated on the principal and previously earned interest is known as _ interest. (11-1)

Question

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Answer 1

Textbook Question

Chapter 11, Problem 1CR

Interest calculated solely on the principal is known as _______ interest, whereas interest calculated on the principal and previously earned interest is known as _______ interest. (11-1)

Expert Solution & Answer

To determine

To fill: The blank spaces in the statement, “Interest calculated solely on the principal is known as ____ interest, whereas interest calculated on the principal and previously earned interest is known as ____ interest.”

Answer to Problem 1CR

Solution:

Interest calculated solely on the principal is known as simple interest, whereas interest calculated on the principal and previously earned interest is known as compound interest.

Explanation of Solution

When a certain amount for investment is dependent on Simple Interest, this implies that, the formula to calculate the amount of interest I=PRT,

On the other hand, the amount of interest paid on principal and previously earned interest is Compound interest. And, it is calculated by the formula;

Compound interest=Principal+Simple interest

Therefore, the complete statement is “Interest calculated solely on the principal is known as simple interest, whereas interest calculated on the principal and previously earned interest is known as compound interest.”

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Answer 2

Textbook Question

Chapter 11, Problem 1CR

Interest calculated solely on the principal is known as _______ interest, whereas interest calculated on the principal and previously earned interest is known as _______ interest. (11-1)

Expert Solution & Answer

To determine

To fill: The blank spaces in the statement, “Interest calculated solely on the principal is known as ____ interest, whereas interest calculated on the principal and previously earned interest is known as ____ interest.”

Answer to Problem 1CR

Solution:

Interest calculated solely on the principal is known as simple interest, whereas interest calculated on the principal and previously earned interest is known as compound interest.

Explanation of Solution

When a certain amount for investment is dependent on Simple Interest, this implies that, the formula to calculate the amount of interest I=PRT,

On the other hand, the amount of interest paid on principal and previously earned interest is Compound interest. And, it is calculated by the formula;

Compound interest=Principal+Simple interest

Therefore, the complete statement is “Interest calculated solely on the principal is known as simple interest, whereas interest calculated on the principal and previously earned interest is known as compound interest.”

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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 3

Textbook Question

Chapter 11, Problem 1CR

Interest calculated solely on the principal is known as _______ interest, whereas interest calculated on the principal and previously earned interest is known as _______ interest. (11-1)

Expert Solution & Answer

To determine

To fill: The blank spaces in the statement, “Interest calculated solely on the principal is known as ____ interest, whereas interest calculated on the principal and previously earned interest is known as ____ interest.”

Answer to Problem 1CR

Solution:

Interest calculated solely on the principal is known as simple interest, whereas interest calculated on the principal and previously earned interest is known as compound interest.

Explanation of Solution

When a certain amount for investment is dependent on Simple Interest, this implies that, the formula to calculate the amount of interest I=PRT,

On the other hand, the amount of interest paid on principal and previously earned interest is Compound interest. And, it is calculated by the formula;

Compound interest=Principal+Simple interest

Therefore, the complete statement is “Interest calculated solely on the principal is known as simple interest, whereas interest calculated on the principal and previously earned interest is known as compound interest.”

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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Textbook Question

Chapter 11, Problem 1CR

Interest calculated solely on the principal is known as _______ interest, whereas interest calculated on the principal and previously earned interest is known as _______ interest. (11-1)

Expert Solution & Answer

To determine

To fill: The blank spaces in the statement, “Interest calculated solely on the principal is known as ____ interest, whereas interest calculated on the principal and previously earned interest is known as ____ interest.”

Answer to Problem 1CR

Solution:

Interest calculated solely on the principal is known as simple interest, whereas interest calculated on the principal and previously earned interest is known as compound interest.

Explanation of Solution

When a certain amount for investment is dependent on Simple Interest, this implies that, the formula to calculate the amount of interest I=PRT,

On the other hand, the amount of interest paid on principal and previously earned interest is Compound interest. And, it is calculated by the formula;

Compound interest=Principal+Simple interest

Therefore, the complete statement is “Interest calculated solely on the principal is known as simple interest, whereas interest calculated on the principal and previously earned interest is known as compound interest.”

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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Textbook Question

Answer 6

Textbook Question

Answer 7

Expert Solution & Answer

To determine

To fill: The blank spaces in the statement, “Interest calculated solely on the principal is known as ____ interest, whereas interest calculated on the principal and previously earned interest is known as ____ interest.”

Answer to Problem 1CR

Solution:

Interest calculated solely on the principal is known as simple interest, whereas interest calculated on the principal and previously earned interest is known as compound interest.

Explanation of Solution

When a certain amount for investment is dependent on Simple Interest, this implies that, the formula to calculate the amount of interest I=PRT,

On the other hand, the amount of interest paid on principal and previously earned interest is Compound interest. And, it is calculated by the formula;

Compound interest=Principal+Simple interest

Therefore, the complete statement is “Interest calculated solely on the principal is known as simple interest, whereas interest calculated on the principal and previously earned interest is known as compound interest.”

Answer 8

Expert Solution & Answer

To determine

To fill: The blank spaces in the statement, “Interest calculated solely on the principal is known as ____ interest, whereas interest calculated on the principal and previously earned interest is known as ____ interest.”

Answer to Problem 1CR

Solution:

Interest calculated solely on the principal is known as simple interest, whereas interest calculated on the principal and previously earned interest is known as compound interest.

Explanation of Solution

When a certain amount for investment is dependent on Simple Interest, this implies that, the formula to calculate the amount of interest I=PRT,

On the other hand, the amount of interest paid on principal and previously earned interest is Compound interest. And, it is calculated by the formula;

Compound interest=Principal+Simple interest

Therefore, the complete statement is “Interest calculated solely on the principal is known as simple interest, whereas interest calculated on the principal and previously earned interest is known as compound interest.”

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

To determine

To fill: The blank spaces in the statement, “Interest calculated solely on the principal is known as ____ interest, whereas interest calculated on the principal and previously earned interest is known as ____ interest.”

Answer 12

Answer to Problem 1CR

Solution:

Interest calculated solely on the principal is known as simple interest, whereas interest calculated on the principal and previously earned interest is known as compound interest.

Answer 13

Explanation of Solution

When a certain amount for investment is dependent on Simple Interest, this implies that, the formula to calculate the amount of interest I=PRT,

On the other hand, the amount of interest paid on principal and previously earned interest is Compound interest. And, it is calculated by the formula;

Compound interest=Principal+Simple interest

Therefore, the complete statement is “Interest calculated solely on the principal is known as simple interest, whereas interest calculated on the principal and previously earned interest is known as compound interest.”

Answer 14

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Interest calculated solely on the principal is known as _ interest, whereas interest calculated on the principal and previously earned interest is known as _ interest. (11-1)

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