the difference between the final amount and the present - value in compound interest is called: a) discount…

the difference between the final amount and the present - value in compound interest is called: a) discount b) simple interest c) compound interest d) effective rate

the difference between the final amount and the present - value in compound interest is called: a) discount b) simple interest c) compound interest d) effective rate

Answer

Brief Explanations:

The difference between the final amount and the present value in compound - interest context is the interest earned. Simple discount is not related to this difference in compound - interest terms. Compound interest is the interest calculated on the initial principal and also on the accumulated interest of previous periods. Effective rate is a different concept related to the overall rate of return considering compounding frequency. The term that describes the difference between the final amount and the present value in compound interest is compound interest.

Answer:

c) Compound Interest