Question

What is compound interest?

a. interest that is accumulated over a period of time but only occurs in a passbook savings account
b. when you earn interest on the interest you have already made
c. when you earn interest on only the principal
d. when you earn interest on the difference between the principal and the interest

Answer 1

the answer is D

Explanation:

Compound interest is the addition of interest to the principal sum of a loan or deposit, or in other words, interest on interest.