alleryStart learning →Besides simple interest, which other way of calculating interest is named?
ACompressed interest
BCompound interest
CComposite interest
DComplete interest
Answer & Solution
Correct answer: B. Compound interest
1. The formula given here covers only one kind of interest.
2. A second kind is mentioned but not worked out.
3. Interest may also be calculated another way, called compound interest.
4. That type is left for later math classes.
_Source: OpenStax Elementary Algebra 2e (CC BY 4.0), Ch 3 'Math Models', sections 3.1-3.5_
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