Examlex
Which one of the following statements is CORRECT?
Compounded Quarterly
The process of calculating interest on an initial investment where the interest is reinvested and additional interest is earned on interest, done four times a year.
Compounded Monthly
Compounded monthly refers to the process where interest is added to the principal sum of a loan or deposit so that the added interest also earns interest from then on.
Compounded Monthly
A method where interest is added to the principal every month, allowing the interest to earn interest in subsequent months.
Compounded Semi-Annually
The process of calculating interest where the interest is added to the principal sum of a loan or deposit twice a year.
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