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Later interest is calculated on the principal plus the interest:
AAssessed before
BAssigned before
CAdded before
DAdjusted before
Answer & Solution
Correct answer: C. Added before
1. This is what separates compounding from simple interest.
2. The base for the next round is larger.
3. It includes interest added previously.
_Source: OpenStax, Contemporary Mathematics, Ch 6 'Money Management'_
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