When the amount earned on a deposit has become part of the principal at the end of a specified time period, the concept is called
A) future value.
B) primary interest.
C) discount interest.
D) compound interest.

Question

Quizplus · Accepted Answer

This concept is known as compound interest, where the interest earned is added to the initial principal, and the new sum then earns interest in subsequent periods. The process of compounding allows the investment to grow at an accelerated pace over time. Options A, B, and C are not correct as they do not accurately describe this concept.

When the Amount Earned on a Deposit Has Become Part