issb mathematics MCQ #226

Compound interest differs from simple interest because it is calculated on:

issb mathematics MCQ #226

  1. Question 1

    Q1. Compound interest differs from simple interest because it is calculated on:

    • A) Principal only always
    • B) Principal plus accumulated interest
    • C) Only time
    • D) Only rate

    Answer: Principal plus accumulated interest

    Explanation: Compound interest is charged on principal plus interest already earned. Work each step carefully; ISSB math rewards accuracy under time pressure.