explain the concept of compound interest in the context of a bank account. interest calculated on the…

explain the concept of compound interest in the context of a bank account. interest calculated on the initial principal and also on the accumulated interest of previous periods. interest calculated only on the initial principal interest calculated based on the banks profit margin interest calculated based on the borrowers credit score

explain the concept of compound interest in the context of a bank account. interest calculated on the initial principal and also on the accumulated interest of previous periods. interest calculated only on the initial principal interest calculated based on the banks profit margin interest calculated based on the borrowers credit score

Answer

Brief Explanations:

Compound interest in a bank - account is the interest calculated on the initial principal and also on the accumulated interest of previous periods. It allows the money in the account to grow at an accelerated rate over time as the interest earned in each period is added to the principal and then earns interest itself in subsequent periods.

Answer:

Interest calculated on the initial principal and also on the accumulated interest of previous periods.