Jamie earned $14 in interest on her savings account last year.She has decided to leave the $14 in her account so that she can earn interest on the $14 this year.The interest earned on last year's interest earnings is called:
A)simple interest.
B)complex interest.
C)accrued interest.
D)interest on interest.
E)discounted interest.

Question

Quizplus · Accepted Answer

The interest earned on last year's interest earnings is called "interest on interest," which is a component of compound interest.

Jamie Earned $14 in Interest on Her Savings Account Last