Ask Question
21 September, 11:07

Jamie earned $14 in interest on her savings account last year. She has decided to leave the $14 in her account so that she can earn interest on the $14 this year. The interest earned on last year's interest earnings is called:

+3
Answers (1)
  1. 21 September, 14:39
    0
    interest on interest.

    Explanation:

    The interest income which is earned from the last years interest earned is called interest on interest. As Jamie earned $14 interest last year and left the amount to earn further interest on this $14 too. Assuming the Effective interest rate is 10%, then additional $1.4 will also be earned on the interest invested with principal. This $1.4 is known as The interest on interest.
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Jamie earned $14 in interest on her savings account last year. She has decided to leave the $14 in her account so that she can earn ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers