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In Business / College | 2025-07-05

What is the term used to describe interest earned on interest gained?
A. Compound interest
B. Simple interest
C. Principal
D. Capital

Asked by monke14

Answer (2)

The term describing interest earned on previously accrued interest is compound interest . This interest is calculated on both the original principal and the accumulated interest, leading to exponential growth of investments over time. Understanding compound interest is crucial for effective financial planning.
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Answered by Anonymous | 2025-07-06

The term for interest earned on previously accrued interest is known as compound interest . This type of interest enables investments to grow at an increasing rate compared to simple interest , which is only calculated on the principal. Understanding compound interest is essential in financial mathematics as it greatly impacts savings and investment growth over time. ;

Answered by GinnyAnswer | 2025-07-06

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