The concept of compound interest is best described as:
A)interest earned on an investment.
B)the total amount of interest earned over the life of an investment.
C)interest earned on interest.
D)the inverse of simple interest.

Question

Quizplus · Accepted Answer

Compound interest is the interest earned not only on the principal amount invested, but also on the interest earned over time. In other words, it is interest earned on interest.

The Concept of Compound Interest Is Best Described As