Question

What is compound interest?

A - the interest earned on the principal of an investment
B - the interest earned on both the principal and interest of an investment or savings account
C - the interest earned on a mutual fund
D - the interest earned on a loan

Answer 1

The correct answer is

The interest is earned on the principal and interest earned previously

:)

Answer 2

That would be B .  The interest  is earned on the principal and interest earned previously.