BACHELOR OF BUSINESS ADMINISTRATION

BUSINESS ADMINISTRATION

BUSINESS MATHEMATICS

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
Interest is computed on the principal and then added to it.
A
Coupon
B
Interest (I)
C
Simple Interest
D
Compound Interest
Explanation: 

Detailed explanation-1: -Simple interest is calculated on the principal, or original, amount of a loan. Compound interest is calculated on the principal amount and the accumulated interest of previous periods, and thus can be regarded as “interest on interest.”

Detailed explanation-2: -Simple interest is based on the principal amount of a loan or deposit. In contrast, compound interest is based on the principal amount and the interest that accumulates on it in every period.

Detailed explanation-3: -3. is computed on the principal and on the accumulated past interests called compound interest.

Detailed explanation-4: -This is also known as compound interest, or compounding. Compound interest grows at a faster rate than basic interest, and it will be fastest when compounding periods are most frequent.

Detailed explanation-5: -Compound interest, Compound interest is computed on the principal and on any interest earned that has not been paid or withdrawn.

There is 1 question to complete.