Q
Which of the following statement is CORRECT regarding compound interest?
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A
A. It is the most basic form of calculating interest.
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B
B. It earns profit not only on principal but also on interest.
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C
C. It is calculated by multiplying principal by rate multiplied by time.
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D
D. It does not take into account the accumulated interest for calculation.
Correct Answer:
B. B. It earns profit not only on principal but also on interest.
