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Compound interest is the interest calculated on the initial principal and also on the accumulated interest from previous periods. This means that interest is earned on both the original amount deposited and the interest that has been added to it. Over time, this can lead to exponential growth of the investment or loan, as the interest compounds at regular intervals. It contrasts with simple interest, where interest is only calculated on the principal amount.
What else can I help you with?
Would the statement 'Simple Interest is interest earned on interest' be True or False?
False. Interest upon interest is compounded interest
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 earned on interest is known as?
Compound Interest
What are the major differences between compound interest loan and simple interest loan?
With compound interest, the interest due for any period attracts interest for all subsequent periods. As a result, compound interest, for the same rate, is greater.With compound interest, the interest due for any period attracts interest for all subsequent periods. As a result, compound interest, for the same rate, is greater.With compound interest, the interest due for any period attracts interest for all subsequent periods. As a result, compound interest, for the same rate, is greater.With compound interest, the interest due for any period attracts interest for all subsequent periods. As a result, compound interest, for the same rate, is greater.
What are some of the uses of compound interest in business?
compound interest increases interest more than simple interest
A compount needed for photosynthesis?
water
Is hydrogen a compount or element?
element
Is carbon a element or a compount?
Carbon is an element.
What are plastic wraps made of?
Poly vinnil --- compount. or polyester
First found compount in photosynthesis?
the removal of hydrogen (H) atoms from water molecules
Is boron a compount or element?
Boron is an element. The lightest member of group 13 with 3 valence electrons
What is the name CD as a compound?
Remember that a compound is the combination of two or more elements. Cd is the symbol for an element (not a compount) named Cadmium.
What is the malahide made of?
"Malahide" is an Irish town located near Dublin. Maybe you mean the preservative, "Formaldehyde" which is an organic compount: CH2O, which is made from carbon, hydrogen, and oxygen
What air Chambers are used in healing open wounds?
its really called a healing chamber;it has special chemical compount specificly formulated to speed the recovery process.its kinda neat
What is the name of the compount copper 2 acetate?
Copper (II) acetate has the chemical formula Cu(CH3COO)2.It is the primary component of verdigris, the green patina seen on copper statues.
What is earning interest on interest?
Compound interest. This is where you work out the interest on a number, then work out the interest on top of the number with the interest added.
Would the statement 'Simple Interest is interest earned on interest' be True or False?
False. Interest upon interest is compounded interest
