Asked by
Helen Hoang
on Nov 08, 2024Verified
Interest earned on the reinvestment of previous interest payments is called _____ interest.
A) Free.
B) Annual.
C) Simple.
D) Interest on.
E) Intermediary.
Compound Interest
Interest calculated on both the original amount of money either loaned or deposited, as well as on the interest that has already been added to it from earlier periods.
Interest on Interest
The interest earned on the reinvestment of previous interest payments, often seen in compound interest scenarios.
- Comprehend how the frequency of interest compounding affects the results of investments.
Verified Answer
EL
Learning Objectives
- Comprehend how the frequency of interest compounding affects the results of investments.
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