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Accumulated or compound interest is calculated by adding interest to both the principal and any interest accumulated up to the point of the calculation.

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Q: How is accumulated interest calculated?
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Related questions

What is a simple interest in math?

Simple interest is interest that is calculated only on the amount of unpaid principal on a loan. Such interest is not added to the value of the loan but is tracked separately. Compound interest is interest that is calculated on the total of unpaid principal and accumulated interest on a loan. The difference is in simple interest there is no interest charged on accumulated interest while in compound interest there is interest charged on accumulated interest.


Interest calculated not only on the original principle but also on the interest already accumulated is called?

The answer is compound interest


What interest is calculated on both the amount borrowed and any previous interest?

Compound interest, but only if the previous interest is accumulated.


What is simple interest?

Simple interest does not compound. In other words, If you start off with $500 and get $5 in interest, the $5 you got in interest will not be included when calculating the amount of interest you will get next year. Simple interest can be calculated by the formula i = prt, where i is the amount of money earned from the interest, p is the principle (starting money), r is the rate (as a decimal,) and t is the time in years. Another formula is used to calculated the accumulated amount: A = p(rt + 1), where A is the accumulated amount.


What is different about compound interest from normal interest?

Compound interest is calculated on the initial principal plus any accumulated interest, resulting in interest earning interest over time. Normal interest, on the other hand, is only calculated on the initial principal amount and does not take into account any interest that has already been earned.


What statements best describes interest?

Interest is the cost of borrowing money, typically expressed as a percentage over a set period of time. It is the fee paid by a borrower to a lender for the use of their money. Interest can be either simple (calculated only on the principal amount) or compound (calculated on the initial amount borrowed and any previously accumulated interest).


How accumulated fund is calculated?

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

true


What kind of interest is paid on the deposit plus accumulated interest from period to period?

A Compound interest !


When accumulated interest is added to the initial principle?

Compound Interest (study island)


Interest paid on both the principal and the interest accumulated on the principal is called?

amount


What are the components of external debt?

Original capital and accumulated interest.