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An amount that is calculated by multiplying an interest rate by a principal amount that is...

An amount that is calculated by multiplying an interest rate by a principal amount that is increased each interest period by the previously accumulated interest is known as A. stated interest. B. simple interest. C. interest. D. nominal interest rate. E. compound interest.

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Answer #1

The answer is option E. Compound interest.

An amount that is calculated by multiplying an interest rate by a principal amount that is increased each interest period by the previously accumulated interest is known as Compound interest.

A. Stated Interest

it is an interest rate listed on a bond coupon. this is the actual amount of interest paid by bond issuer.

B.simple interest.

it is calulated by multiplying the interest rate by the principal by the number of days

C. interest

interest is an amount above repayment of a principal

D. nominal interest rate

it means interest before taking inflation into account.

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