A) Simple interest is calculated only on the principal amount, while compound interest is calculated on both the principal and the interest earned
B) Simple interest is calculated on both the principal and the interest earned, while compound interest is calculated only on the principal amount
C) Simple interest has a variable interest rate, while compound interest has a fixed interest rate
D) Simple interest has a fixed interest rate, while compound interest has a variable interest rate
Answer: A) Simple interest is calculated only