Interest earned only on the original principal amount invested is called _______________.

A) Free interest.
B) Annual interest.
C) Simple interest.
D) Interest on interest.
E) Compound interest.

Simple Interest

Interest assessed only on the principal sum, or on the part of the principal that still needs to be repaid.

Principal Amount

The original sum of money borrowed in a loan or invested, distinct from interest or profit earned.

Invested

To be invested refers to the allocation of resources, such as capital or time, into a particular venture, asset, or effort with the expectation of generating a future return.