which of the following statements best describes compound interest?

A) compound interest is when you make interest off of your interest. The amount of interest earned is based off of your principal and any accrued interest.
B) compound interest is when you make interest off of your principal. Interest does not Compound on interest that has been previously added to your account. C)compound interest is only paid once a year. If you want an account that pays you interest more often, you will need to open an account that pays simple interest.
D)compound interest does not make you as much money as simple interest.

The compound interest is the interest when you make interest off of your interest. It is a interest on loan which is calculated on the basis of principal and any accrued interest.

What is compound interest?

The compound interest is charged on the loan on both the principal amount and accumulated interest from the previous time periods.

Compound interest is very better to use for investment as it grows the fund at fast rate.

It can be calculated annually, monthly, quarterly or daily basis as well.

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