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The effect of compound interest is that interest is earned on the accrued interest, as well as the principal amount.

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14y ago

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How does compound interest work with stocks?

Compound interest with stocks works by reinvesting the earnings from your initial investment, which then generate more earnings. Over time, this compounding effect can significantly increase the value of your investment.


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

compound... yes it is compound interest.


What is the calculation for a simple compound interest rate?

There is simple interest and there is compound interest but this question is the first that I have heard of a simple 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.


Is the interest accrued on a student loan simple or compound interest?

its compound interest


What are the benefits of using doubly compound interest for long-term investments?

Doubly compound interest can help investments grow faster over time due to the compounding effect on both the principal amount and the accumulated interest. This can lead to higher returns compared to simple or single compound interest, making it advantageous for long-term investments.


What are some of the uses of compound interest in business?

compound interest increases interest more than simple interest


Can you explain how compound interest works in stocks?

Compound interest in stocks refers to the process where the interest earned on an investment is added to the principal amount, allowing for the growth of the investment to accelerate over time. As the investment grows, the interest earned also increases, leading to a compounding effect that can result in significant returns over the long term. This compounding effect is a key factor in the growth potential of stock investments.


Which of the two is exponential function the simple or the compound interest?

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WHAT does the carrot in the formula for compound interest means?

There is no carrot in the compound interest formula!


What is earning interest on interest called?

Compound interest


Interest earned on interest is known as?

Compound Interest