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This type of interest is calculated by adding the interest earned to the principal.?
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∙ 7y ago
compound
Llewellyn Hermiston
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What is an amount of money earned on a principal called?
The amount of money earned on a principal called is interest
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.
What is the effect of compound interest?
The effect of compound interest is that interest is earned on the accrued interest, as well as the principal amount.
1000 dollars in a savings account pays 7 percent interest per year The interest earned after the first year is added to the account How much interest is earned on the new principal the following year?
$74.90
When the amount earned on a deposit has become part of the principal at the end of a specified time period the concept is called Answer discount interest compound interest primary interest?
If the interest is reinvested and so itself gains interest (in the next interest period) it is compound interest.
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
Type of interest is calculated by adding the interest earned to the principle?
Compound interest
What is the value of compound interest?
Compound interest increases the amount earned by adding credited interest to the principal, and interest will then be earned on that money as well. The longer the principal and interest remain in the account, the greater the earnings they will accrue.
What is an amount of money earned on a principal called?
The amount of money earned on a principal called is interest
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 principal if the Interest earned is 27.00 for 2 years at 1.5?
Assuming that 1.5 refers to 1.5% and that the interest is compounded annually, the principal is 893.30
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.
The interest earned on an investment can be calculated with the formula you prt where you interest p principal r interest rate and t time If p 600 r 0.05 and t 8 what is the value of you?
This is applying simple interest of 5% per term, for 8 terms, and finally, multiplying it by the $600 principal. 600 x 0.05x8 equal to 240 $.
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.
