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The answer is compound interest

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Q: Interest calculated not only on the original principle but also on the interest already accumulated is called?
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Related questions

How is accumulated interest calculated?

Accumulated or compound interest is calculated by adding interest to both the principal and any interest accumulated up to the point of the calculation.


Can compound interest be described as interest earned on principle along with accumulated interest?

true


What is a simple interest in math?

Simple interest is interest that is calculated only on the amount of unpaid principal on a loan. Such interest is not added to the value of the loan but is tracked separately. Compound interest is interest that is calculated on the total of unpaid principal and accumulated interest on a loan. The difference is in simple interest there is no interest charged on accumulated interest while in compound interest there is interest charged on accumulated interest.


When accumulated interest is added to the initial principle?

Compound Interest (study island)


What interest is calculated on both the amount borrowed and any previous interest?

Compound interest, but only if the previous interest is accumulated.


What is simple interest?

Simple interest does not compound. In other words, If you start off with $500 and get $5 in interest, the $5 you got in interest will not be included when calculating the amount of interest you will get next year. Simple interest can be calculated by the formula i = prt, where i is the amount of money earned from the interest, p is the principle (starting money), r is the rate (as a decimal,) and t is the time in years. Another formula is used to calculated the accumulated amount: A = p(rt + 1), where A is the accumulated amount.


Type of interest is calculated by adding the interest earned to the principle?

Compound interest


Which equation represents how the interest on the loan is calculated?

Interest=Principle times rate times time


Which equation represents how the interest on a loan is calculated?

Interest=Principle times rate times time


How is the interest on a loan calculated?

The interest on a loan can be calculated in one of two ways - compounding or simple. Most loans in the U.S. are compounding loans, meaning that the interest is added to the principle each month before the new interest amount is calculated.


How is interest on a loan calculated?

The interest on a loan can be calculated in one of two ways - compounding or simple. Most loans in the U.S. are compounding loans, meaning that the interest is added to the principle each month before the new interest amount is calculated.


How is simple interested calculated differently from coupounded interest?

With compound interest the interest amount is added to the principle and then earns interest as well. This is usually expressed as an annual percentage rate (APR). Simple interest is not added to the principle and does not earn further interest and is used rarely.