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Answered

What is compound interest?

a.) the interest earned on the principal of an investment

b.)the interest earned on both the principal and interest of an investment or savings

account

c.)the interest earned on a mutual fund

d.)the interest earned on a loan

Verified Answer :

Answer:

The correct answer to the following question will be Option D (the interest earned on a loan).

Explanation:

  • Compound Interest is adding interest to the total amount of a deposit or loan, or interest on the debt, in other words. It is also the product of investing interest, instead of paying it out, so that profit on the principal amount plus previously accrued interest is then received in the next cycle.
  • Banks usually pay compounding interest on deposits, which is a gain for depositors. If you are a holder of credit cards, the experience of the workings of savings rates may be an opportunity to rapidly pay off your balances.

Therefore, Option D is the right answer.

Answer:

The other person has the wrong answer the real answer is the interest earned on both the principal and interest of an investment or savings account

Explanation:

I used his answer and got it wrong then i put this answer and got it right.