ECONOMICS
SAVING AND INVESTING
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]


present value


simple interest


compound interest


future value

Detailed explanation1: Compound interest is the interest on a deposit calculated based on both the initial principal and the accumulated interest from previous periods. 1. Or, more simply put, compound interest is interest you earn on interest . You can compound interest on different frequency schedules such as daily, monthly or annually.
Detailed explanation2: Compound interest, also called “compounding interest, ” is the interest on the initial investment as well as the accrued interest on that investment.
Detailed explanation3: Compound interest is interest calculated on both the principal amount and any previouslyearned interest. Compound interest is different from simple interest, which is only applied to the principal amount. Interest may be compounded daily, monthly, quarterly or annually.
Detailed explanation4: Compound interest is interest calculated on an account’s principal plus any accumulated interest. If you were to deposit $1, 000 into an account with a 2% annual interest rate, you would earn $20 ($1, 000 x . 02) in interest the first year.
Detailed explanation5: What Is Compound Interest? Compound interest is the interest on savings calculated on both the initial principal and the accumulated interest from previous periods.