### FINANCIAL MANAGEMENT

 Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
____ is simply the interest earned in subsequent periods on the interest earned in prior periods.
 A Quoted interest B Anticipated interest C Simple interest D Compound interest
Explanation:

Detailed explanation-1: -Compound interest is the interest on a deposit calculated based on both the initial principal and the accumulated interest from previous periods. Or, more simply put, compound interest is interest you earn on interest .

Detailed explanation-2: -Compound interest means that interest is earned on prior interest in addition to the principal. Due to compounding, the total amount of debt grows exponentially, and its mathematical study led to the discovery of the number e.

Detailed explanation-3: -Simple Interest can be defined as the sum paid back for using the borrowed money over a fixed period of time. Compound Interest can be defined as when the sum principal amount exceeds the due date for payment, along with the rate of interest for a period of time.

Detailed explanation-4: -The interest rate, together with the compounding period and the balance in the account, determines how much interest is added in each compounding period. The basic formula is this: the interest to be added = (interest rate for one period)*(balance at the beginning of the period).

Detailed explanation-5: -Compound interest is a kind of interest based on adding the original principal-that is, the initial amount invested or borrowed-with the accumulated interest from previous periods. For example, say you have \$100 in a savings account, and it earns interest at a 10% rate, compounded annually.

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