Question

which of the following best describes a simple interest rate? the same amount of interest is paid each year additional interest is paid on compounded interest only the principal is repaid and there is no interest

Explanation:

Simple interest is calculated only on the original principal amount. The formula for simple interest is $I = P \times r \times t$, where $P$ is principal, $r$ is annual interest rate, and $t$ is time. This means the annual interest amount ($P \times r$) remains constant each year. The other options describe compound interest (earning interest on interest) or no interest, which do not match simple interest.

Answer:

the same amount of interest is paid each year