The Process of Accumulating Interest on an Investment Over Time

question 52

Multiple Choice

The process of accumulating interest on an investment over time to earn more interest is called:

• A) Growth.
• B) Compounding.
• C) Aggregation.
• D) Accumulation.
• E) Discounting.

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Definitions:

Short-term Memory

The capacity for holding a small amount of information in mind in an active, readily available state for a short period of time.

Limited Capacity

The concept that there is a finite amount of information or cognitive resources that an individual can process at one time.

Sensory Register

The part of the memory system where sensory information is stored for a very short period of time, almost instantaneously.

Fake Memory

A psychological phenomenon where a person recalls something that did not happen or recalls it differently from the way it actually happened.