Which statement about compound interest is CORRECT?

1. A Option A: It does not take into account the accumulated interest for calculation.
2. B Option B: It is the most basic form of calculating interest.
3. C Option C: It earns profit not only on principal but also on interest.
4. D Option D: It is calculated by multiplying principal by rate multiplied by time.

Answer checked 11 October 2026 · How we write and check questions