26. Interest computed on the principal and on the previously accrued interest is called A. Simple interest B. Compound interest C. A & B D. None

The correct answer is B. Compound interest.Compound interest is calculated on both the principal amount and any previously accrued interest. This means that the interest is added to the principal amount at regular intervals, and subsequent interest calculations are based on the increased amount. This differs from simple interest, which is calculated only on the principal amount.