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Compound Interest Differs from Simple Interest Because Compound Interest Is

Question 22

Multiple Choice

Compound interest differs from simple interest because compound interest is interest paid on


A) the original deposit only,whereas simple interest is interest paid only on the original deposit but not on all previously accumulated interest.
B) all previously accumulated interest,whereas simple interest is interest paid not only on the original deposit but on all previously accumulated interest.
C) the original deposit only,whereas simple interest is interest paid only on all previously accumulated interest.
D) the original deposit and on all previously accumulated interest,whereas simple interest is interest paid on all previously accumulated interest.
E) the original deposit and on all previously accumulated interest,whereas simple interest is interest paid on the original deposit only.

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