Compound interest describes increases in value when interest is paid, or compounded, on:

Name: Compound interest describes increases in value when interest is paid, or compounded, on:
Brand: Quizplus
Rating: 4.7 (58 reviews)

Question

Quizplus · Accepted Answer

Compound interest is calculated on both the original amount invested (principal) and the previously accumulated interest payments. This means that each time interest is compounded, the total balance (principal plus interest) earns interest, leading to exponential growth in the value of the investment over time.

Compound Interest Describes Increases in Value When Interest Is Paid