Compound Interest Computes interest on >the principal and > on interest earned to date (assuming interest is left on deposit). Compound interest is the typical interest computation applied in business situations. Chapter 6-9 LO 2 Distinguish between simple and compound interest.Chapter 6-9 Computes interest on Ø the principal and Ø on interest earned to date (assuming interest is left on deposit). Compound interest is the typical interest computation applied in business situations