meaning of compound interest
Answers
Answered by
1
Step-by-step explanation:
Compound interest is the addition of interest to the principal sum of a loan or deposit, or in other words, interest on interest. It is the result of reinvesting interest, rather than paying it out, so that interest in the next period is then earned on the principal sum plus previously accumulated interest.
Answered by
3
Answer:
Compound interest makes your money grow faster because interest is calculate on the accumulated interest over time as well as on your original principal.
Hope it helps you.
Similar questions