Compound interest means that interest in a second period is based on the total amount borrowed plus the interest accrued in the first period.

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Compound interest is a method of calculating interest where the interest earned in each period is added to the principal amount, and the next period's interest is calculated based on the new total amount. Therefore, the interest in a second period is based on the total amount borrowed plus the interest accrued in the first period.

Compound Interest Means That Interest in a Second Period Is