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7 August, 23:03

Which answer illustrates "compound interest"

a - you open two savings account and put money in both

b - compound interest only occurs on the first 10% you have earned

c - you can interest only on the original amount you deposited in your account

d - you earn interest on the money in your savings account. Then you, in addition earn interest on interest

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Answers (1)
  1. 7 August, 23:07
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    The answer is letter d.

    When you say "compound interest" you would likely mean " earning an interest on the money you have saved and the interest you earn". Therefore, the sentence that best illustrates the meaning of compound interest is : you earn interest on the money in your savings account. Then you, in addition earn interest on interest
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