________ is the interest charged on both the principal and the interest that accumulates on a loan.
A) Simple interest
B) APR
C) The interest payment
D) Compound interest

Question

Quizplus · Accepted Answer

Compound interest is the interest charged on both the principal and the interest that accumulates on a loan over time. It is calculated by adding the interest accrued each period to the principal amount, then calculating interest based on the new total. This leads to a higher total amount paid on the loan compared to simple interest, which only charges interest on the principal amount.

________ Is the Interest Charged on Both the Principal and the Interest