# What is defined as the investment of loan or principal which is based not only on the original amount of the loan or principal but the amount of loaned or principal plus the previous accumulated interest ? with Answer - Civil Engineering Mcqs | TestPrep

> Solved MCQ: What is defined as the investment of loan or principal which is based not only on the original amount of the loan or principal but the amount of loaned or principal plus the previous accumulated interest ? Correct Answer: C. Compound interest. Verified answer explanation for FPSC, PPSC, MDCAT, NTS, and CSS competitive exam preparation.

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# What is defined as the investment of loan or principal which is based not only on the original amount of the loan or principal but the amount of loaned or principal plus the previous accumulated interest ?

Direct Answer & Quick Reference

The correct option is **C. Compound interest**.

A. Effective rate of interest

B. Nominal rate of interest

C. Compound interest **(Correct Answer)**

D. Simple interest

✨ Explain with AI

Verified Key: C. Compound interest
Solved by 1,312+ students

Verified against official examination board answer keys and standard curriculum textbooks.

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