Question

What is interest as it relates to a deposit account?

Answer 1

Answer:

Please check explanations

Step-by-step explanation:

Here, we want to talk about how interest relates to a deposit account

A deposit account is one in which we are expected to put an amount of money for a certain period of time

Now, we are supposed to take out the money after the end of the period

The money we are taking out is generally greater than the money we have put in

The difference between the amount of money we have put in and the amount we are taking out after the end of the stipulated period is what we know as interest

This interest is however based on some parameters

Generally, the longer we have put the money, the greater is the amount of money we will be expected to receive at the end of that time