Compound Interest Means That

question 107

Multiple Choice

Compound interest means that:

• A) you get an interest deduction for paying your loan off early.
• B) you get interest on interest.
• C) you get an interest deduction if you take out a loan for longer than one year.
• D) interest rates will rise on larger loans.

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Definitions:

Labor-intensive Business

A business that requires a high level of manual labor input compared to capital investment, typically characterized by a significant proportion of operational costs being attributed to human labor.

Capital-intensive Business

A type of business that requires significant investment in capital assets like machinery and equipment, often associated with manufacturing industries.

Service-intensive Business

A type of enterprise that primarily offers services rather than goods, requiring a high level of customer interaction and support.

Startups

Newly established businesses, typically in the technology sector, focused on a unique product or service.