Compound interest is interest that is applied a number of times during the term of a loan or investment; interest paid on the principal and previously earned interest.

Question

Compound interest is interest that is applied a number of times during the term of a loan or investment; interest paid on the principal and previously earned interest.​

Quizplus · Accepted Answer

Compound interest is calculated on the initial principal and also on the accumulated interest of previous periods of a deposit or loan, meaning it earns interest on interest.

Compound Interest Is Interest That Is Applied a Number of Times