Answer:
B. The interest earned on the principal and the interest of an investment or a saving account is the correct answer.
Explanation:
The interest calculated on the initial principal is called Compound interest. All the accumulated interest of the previous periods are also included. It is interest on interest and makes the sum grow faster than simple interest. The simple interest is calculated only on the principal amount. The compound interest depends on the frequency of compounding. If the number of compounding period is higher then the compound interest is also higher.
