Question

multiple choice
what is compound interest?
this question is worth 10 point(s)
a penalty for missing payments
a fixed fee charged by banks
interest that earns interest over time
interest calculated only on the original amount

Explanation:

Compound interest is defined as interest calculated on the initial principal and also on the accumulated interest from previous periods, meaning it is interest that earns interest over time. The other options are incorrect: a penalty for missed payments is a late fee, a fixed bank fee is a service charge, and interest only on the original amount is simple interest.

Answer:

Interest that earns interest over time