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In Business / College | 2025-07-06

Interest earned on both principal and accrued (paid) interest is called:
a. a big payday.
b. an annuity.
c. compound interest.
d. none of the above.

Asked by enrique0394

Answer (2)

The term for interest earned on both principal and accrued interest is known as compound interest . This process allows interest to generate additional interest, leading to accelerated growth of your investment or savings. Understanding how compound interest works is essential for effective financial planning. ;

Answered by GinnyAnswer | 2025-07-06

The interest earned on both principal and accrued interest is known as compound interest. It allows for interest to be calculated on both the original principal and any previously earned interest, leading to exponential growth over time. Thus, the correct answer is c. compound interest .
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Answered by Anonymous | 2025-07-20

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