Calculating interest on the principal and on all the interest earned to date is called compound interest.

Name: Calculating interest on the principal and on all the interest earned to date is called compound interest.
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This statement is true. Compound interest involves calculating interest not only on the principal but also on all the interest earned up to that point. This leads to a compounding effect that can significantly increase the total amount of interest earned over time.

Calculating Interest on the Principal and on All the Interest