Question

4 interest paid only on the amount of your original investment is known as ______.
simple interest.
complex interest.
quick term interest.
compound interest.

Explanation:

Analyze the definition of interest types

The question asks for the term that describes interest paid only on the original principal amount of an investment.

Compare the options

• Simple interest is calculated solely on the initial principal amount.
• Compound interest is calculated on the principal plus any accumulated interest.
• Complex interest and quick term interest are not standard financial terms for this definition.

Determine the correct choice

The definition matches "simple interest" perfectly.

Answer:

• (A) simple interest. (Correct answer)
• (B) complex interest.
• (C) quick term interest.
• (D) compound interest.