Q499
Earned interest rate which is reinvested in other investment is classified as
A.
compound interest
AnswerB.
investment risk
C.
interest rate
D.
stated rate
Answer: Option A
Solution
Answer: Option A
Solution:
Earned interest rate which is reinvested in other investment is classified as compound interest. Compound interest (or compounding interest) is interest calculated on the initial principal, which also includes all of the accumulated interest of previous periods of a deposit or loan.