Question

CH5 Interest earned on both the initial principal and the interest reinvested from prior periods is...

CH5

Interest earned on both the initial principal and the interest reinvested from prior periods is called:

Group of answer choices

Interest on interest.

Compound interest.

Dual interest.

Simple interest.

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Answer #1

Option '2' is correct answer

Compound Interest.

Interest earned on both the principal and the interest reinvested from prior periods is called Compound Interest.

Where as simple Interest is earned only on the original Investment. so incorrect

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