Question

what is the definition of compound interest​

Answer 1

Answer:

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.

Step-by-step explanation:

Answer 2

Answer:

Compound interest is the interest on a loan or deposit calculated based on both the initial principal and accumulated interest from previous periods

Step-by-step explanation:

$A=P(1+\frac{r}{n} )^{nt}$