Question

2. Select the best definition of compound interest.

a. Compound interest is earning interest on the original amount you deposited.
b. Compound interest is earning interest on the original amount you deposited plus
any interest earned.
c. Compound interest is the amount of interest you are charged on your bank
account each month.
d. Compound interest is earning a fixed dollar amount on your bank account each
month.

Answer 1

b. Compound interest is earning interest on the original amount you deposited plus any interest earned.