Final answer:
False. Compound interest is not the interest that is divided into different accounts. It is an interest rate calculation on the principal plus the accumulated interest.
Step-by-step explanation:
No, compound interest is not the interest that is divided into different accounts. Compound interest is an interest rate calculation on the principal plus the accumulated interest. It is the calculation of interest that is earned on both the initial amount (principal) and the interest that has already been earned. Compound interest grows exponentially over time and can be calculated using the formula: Compound Interest = Future Value - Present Value.