Which of the following statements is INCORRECT? Select one:

a. The situation in which interest is earned on interest that was earned in the past is referred to as compound interest.

b. Compound interest occurs when interest paid on the investment during the first period is added to the principal; then, during the second period, interest is earned on this new sum.

c. If you only earned interest on your initial investment, it would be referred to as simple interest.

d. Compound interest occurs only in case of annuity. Clear my choice