Home › SBI PO › Quantitative Aptitude › Interest › After each interval, compound interest is added …
After each interval, compound interest is added to the:
APortfolio
BPrincipal
CPremium
DProvision
Answer & Solution
Correct answer: B. Principal
1. The account balance grows at each step.
2. The addition joins the sum first invested.
3. It is added to the original principal.
_Source: OpenStax, Contemporary Mathematics, Ch 6 'Money Management'_
Related questions
The total value of an investment after interest is added is its:Money the depositor earns from a bank account is also called:Using 360 rather than 365 days makes the interest charged:Some banks instead treat a year as having how many days?The day count convention described as Actual is paired with:For a loan quoted in days, the daily rate divides the annual rate by:A 6,000 rupee loan at 5 per cent for 2 years has a payoff of:A 10,000 rupee loan at 8 per cent for 3 years has a payoff of: