Which term describes the interest earned on both the initial principal and the interest that has been added to it?

• Compound interest
• Variable interest
• Fixed interest
• Simple interest

Related MCQs

• Which of the following best describes the term "principal" in interest calculations?
• An automobile financier claims to be lending money at simple interest, but he includes the interest every six months for calculating the principal. If he is charging an interest of 10%, the effective rate of interest becomes :_________?
• If in 2 years at simple interest the principal increases by 16%, what will be the compound interest earned (in Rs.) on Rs. 25,000 in 2 years at the same rate?
• If a sum of $1200 is invested at an annual simple interest rate of 5% for 2 years, what is the total interest earned?
• If $2000 is invested at an annual simple interest rate of 4% for 3 years, what is the total interest earned?
• What happens to the amount of interest earned when interest is compounded more frequently?
• A man took loan from a bank at the rate of 12% p.a. simple interest. After 3 years he had to pay Rs. 5400 interest only for the period. The principal amount borrowed by him was:
• What is the term for the initial amount of money borrowed or invested, before interest?
• Mr. Ali borrows RS. 500 from bank for a period of 4 years. If interest rate is 11% per anum, what would be the amount of interest he has to pay back in addition to the principal amount?
• Which of the following represents the amount of money accumulated after n years, including interest, on a principal amount P at an annual interest rate r compounded annually?