____ interest is paid not only on the principal but also on any interest earned but not withdrawn during earlier periods.
A) Basic
B) Simple
C) Future
D) Compound

Question

Quizplus · Accepted Answer

Compound interest is the type of interest where the interest is not only earned on the principal amount but also on any interest earned but not withdrawn during earlier periods. This creates a compounding effect, resulting in a higher effective interest rate over time.

____ Interest Is Paid Not Only on the Principal but Also