Compound interest is best defined as the interest earned:
A) On prior year's interest which was reinvested.
B) On a simple basis for multiple years.
C) On the initial investment for a stated number of periods.
D) On both the interest reinvested from prior periods and the initial investment.
E) For the first year multiplied by the number of years in the investment period.

Question

Quizplus · Accepted Answer

The Answer of Compound interest is best defined as the interest earned:
A) On prior year's interest which was reinvested.
B) On a simple basis for multiple years.
C) On the initial investment for a stated number of periods.
D) On both the interest reinvested from prior periods and the initial investment.
E) For the first year multiplied by the number of years in the investment period.

Compound Interest Is Best Defined as the Interest Earned