ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Compound interest is interest paid on interest previously earned. It is important to build up your FICO score by taking out credit cards and car loans. The purpose of insurance is to transfer risk.

Detailed explanation-2: -Compound interest is interest you get on both the principal you initially deposit and the interest you’ve already earned. The longer the money is in the account (whether it’s a savings account or a loan), the more the total amount will be.

Detailed explanation-3: -Compound interest is interest paid on interest previously earned.

Detailed explanation-4: -The interest on a loan or deposit calculated based on the initial principal, and the collective interest from previous periods is called compound interest.

Detailed explanation-5: -Compound Interest: Definition Compound interest is like interest on interest – it’s money earned or paid based on an initial principal balance, plus any interest earned or paid on top of that over time. The speed at which interest accrues will depend on how often it compounds.