Multiple Choice
Compounding refers to
A) the calculation of interest rates after the compounding effect of taxes has been allowed for.
B) the paying back of both interest and principal during the life of a fixed payment loan.
C) the process of earning interest on both the interest and the principal of an investment.
D) the increased value of an investment that arises from the payment of periodic interest.
Correct Answer:
Verified
Correct Answer:
Verified
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