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Compound interest

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Q: Type of interest is calculated by adding the interest earned to the principle?
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Related questions

This type of interest is calculated by adding the interest earned to the principal.?

compound


Is interest earned calculated by multiplying the principle times the opportunity cost?

No.


Which type of interest is calculated by adding the interest earned to the principal?

compound... yes it is compound interest.


What type of interest is calculated by adding the interest earned to the principal during specific and agreed intervals?

Compound


What type of interest is calculated by adding the interest earned to the principal during specific and agreed upon intervals?

Compound


Which type of interest is calculated by adding the interest earned to the principal during specific and agreed upon intervals?

comopound


Can compound interest be described as interest earned on principle along with accumulated interest?

true


Does sinking fund makes money grow by adding interest to previous interest earned?

A sinking fund makes money grow over time by adding interest to previous interest earned. ... The rate of return matters when it comes to compound interest.


What is the difference between simple and compound interest?

Simple intrest is one you are making on the principle. Compound Intrest is one your are making on principle plus intrest you have earned on it. So basically you are making Intrest on the Intrest you have earned on your principle. For Example: Compound Intrest, You have $5000.00 invested in a CD, First month you have earned $100.00 on that CD in intrest, in following month you will earn more because you are getting paid intrest on your $100.00 you have earned in intrest in first month and it goes on like that. in simple intrest you won't make intrest on intrest you have earned, you will only earn it on actuall $5000.00.


Are interest rates on government bonds usually calculated on the face value of the bond?

The interest earned on government bonds is calculated on the face value of the bond plus the interest that has been earned on the bond.


Are Simple interest calculated as a percentage of the bank balance and interest earned?

This answer is False!!


How is interest different from compound interest?

Simple interest is interest paid on the original principle only, Compound interest is the interest earned not only on the original principal, but also on all interests earned previously.