12
QuizMultiple Choice

Personal Finances

Question 12 • 2026 VA Economics and Personal Finance - IC

__________ interest is paid on the amount of the original deposit plus any interest the account has earned.

Answer
A
Annual
B
Simple
C
Periodic
D
Compound

Explanation

Compound interest is calculated on both the original deposit and the interest already earned. This means the balance can grow faster over time because each new interest payment is based on an increasingly larger amount. The correct choice is compound interest.

AI-written and checked against the verified answer.

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