Question

Which of the following statements about compound interest are true? Select all that apply.

1. The amount of interest earned in any time period changes from one period to the next.
2. The interest in any time period is calculated using only the original principal.
3. Interest is earned on the principal.
4. Interest is earned on any accumulated interest.


A) 1, 2
B) 2, 3
C) 3, 4
D) 1, 4

Answer 1

The correct statements about compound interest are that the amount of interest earned in any time period changes, interest is earned on the principal, and interest is earned on any accumulated interest.

Step-by-step explanation:

The correct statements about compound interest are:

1. The amount of interest earned in any time period changes from one period to the next.
2. Interest is earned on the principal.
3. Interest is earned on any accumulated interest.

Therefore, the correct answer is option D) 1, 4.