Compound interest is the addition of interest to the principal sum of a loan or deposit, or in other words, interest on interest.

Step-by-step explanation:

It is the result of reinvesting interest, rather than paying it out, so that interest in the next period is then earned on the principal sum plus previously accumulated interest.

## Answers ( )

Answer:it’s added on to the loan

Step-by-step explanation:the other person totally searched it up so you could just done that but if you want a simplified answer here it is

Answer:Compound interest is the addition of interest to the principal sum of a loan or deposit, or in other words, interest on interest.

Step-by-step explanation:It is the result of reinvesting interest, rather than paying it out, so that interest in the next period is then earned on the principal sum plus previously accumulated interest.