which of the following statements is true about compound interest?\n○ compound interest is difficult to…

which of the following statements is true about compound interest?\n○ compound interest is difficult to calculate, so those who use it earn higher profits for their efforts.\n○ compound interest means you have a fund manager who is compounding your returns without charging a fee.\n○ compound interest allows you to earn not only on the amount you have saved, but also on the interest you have already earned.\n○ compound interest directly impacts how much you will be charged in fees.

which of the following statements is true about compound interest?\n○ compound interest is difficult to calculate, so those who use it earn higher profits for their efforts.\n○ compound interest means you have a fund manager who is compounding your returns without charging a fee.\n○ compound interest allows you to earn not only on the amount you have saved, but also on the interest you have already earned.\n○ compound interest directly impacts how much you will be charged in fees.

Answer

Brief Explanations:

Compound interest is the interest calculated on the initial principal and also on the accumulated interest of previous periods. It allows for growth on both the original amount saved and the interest already earned. The first option is incorrect as difficulty of calculation isn't related to higher profits. The second option is wrong as compound - interest doesn't imply a free - of - charge fund manager. The fourth option is incorrect as compound interest is about growth of investment, not fees charged.

Answer:

Compound interest allows you to earn not only on the amount you have saved, but also on the interest you have already earned.