Compound interest can best be described as:
A) interest on interest only.
B) the discount rate.
C) interest on interest and interest on original principal.
D) interest earned on the original principal.

Question

Quizplus · Accepted Answer

Compound interest is the interest on a loan or deposit calculated based on both the initial principal and the accumulated interest from previous periods. This means it includes interest on the original principal and the interest that has been added to that principal.

Compound Interest Can Best Be Described As