in compound interest, the interest is computed:\n a) only on the original principal\n b) on the principal…

in compound interest, the interest is computed:\n a) only on the original principal\n b) on the principal plus accumulated interest\n c) only on the accumulated interest\n d) on future value only

in compound interest, the interest is computed:\n a) only on the original principal\n b) on the principal plus accumulated interest\n c) only on the accumulated interest\n d) on future value only

Answer

Brief Explanations:

Compound - interest is calculated on the principal amount plus the accumulated interest from previous periods. This is what differentiates it from simple - interest which is calculated only on the original principal.

Answer:

B. On the principal plus accumulated interest