Maths · Arithmetic and Geometric progressions

The calculation of interest on the interest of principal amount is called

The calculation of interest on the interest of principal amount is called

  • A. simple interest
  • B. compound interest
  • C. multiple interest
  • D. interest quarterly compounded

Step-by-step solution

Interest calculated on both the principal and the accumulated interest from previous periods is called compound interest. This contrasts with simple interest, which is calculated only on the principal amount.
Practise more in this unitView MCQsSign up for full question bank