Hi can you please answer this question for me? is the interest that the bank pays you on the principal plus on the interest that you earned the preceding year

simple intrest
compound interest
complex interest

compound interest

Explanation:

Compounding interest refers to the action of adding the interest earned in a period to the principal amount. This action increases the principal amount invested. In compound interest, both the principal amount and the interest earned increases every financial year.

Compound interest contrasts with simple interest, which is the interest earned on the principal amount only. Whereas compound interest amount increases every year, simple interest remains constant throughout the life of the investment.

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