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kirill115 [55]
2 years ago
12

Compounding refers directly to Group of answer choices finding the present value of a future sum of money. finding the future va

lue of a present sum of money. changes in the interest rate over time on a bank account or a similar savings vehicle. interest being earned on previously-earned interest.
Business
1 answer:
zvonat [6]2 years ago
3 0

Answer:

The correct answer is letter "D": interest being earned on previously-earned interest.

Explanation:

Compounding, also called "<em>interest on interest</em>", refers to a method of calculating interest based on the principal of a capital gain plus interest that was already accrued. It is a form of reinvestment based on accumulated interest. Compound interest could be computed by day, month or year.

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