Asked by
Alden Varian
on Oct 28, 2024
Verified
Compound interest is
A) calculated by multiplying the principal times the rate times the time period
B) interest on the original principal plus any past unpaid accrued interest to date
C) interest on the original principal paid or received
D) interest on any past unpaid interest accrued to date
Original Principal
The initial amount of debt or loan before any interest or fees are added; it is the base amount on which interest calculations are made.
Accrued Interest
Interest earned or owed that has not yet been paid or received.
- Identify the difference between simple interest and compound interest.
Verified Answer
CB
Learning Objectives
- Identify the difference between simple interest and compound interest.