when interest is earned not only on principal but also on interest. It is referred to as: Compound interest.
Compound interest is the interest that is compounded on the loan when the deposit is measured in both the initial principle and the collected interest from the past period, and the original money is invested.
Thus, it is compound interest
For more details about compound interest, click here:
https://brainly.com/question/14587174
#SPJ1