WONDER #382: What Is Compound Interest?

Question 1 of 3

Money financial institutions pay you for keeping your money in an account with them is called what?

  1. service fee
  2. withdrawal
  3. deposit
  4. interest

Question 2 of 3

When you earn interest on your interest, your financial institution is paying you what kind of interest?

  1. simple
  2. complex
  3. compound
  4. extra

Question 3 of 3

Which of the following is NOT an example of an investment a financial institution might make so that it can pay compound interest to customers for the privilege of using their money?

  1. stocks
  2. bonds
  3. mutual funds
  4. expense account

Check your answers online at https://www.wonderopolis.org/wonder/what-is-compound-interest.