We Call the Process of Earning Interest on Both the Original

question 114

Multiple Choice

We call the process of earning interest on both the original deposit and on the earlier interest payments

• A) discounting.
• B) multiplying.
• C) compounding.
• D) computing.

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Definitions:

Borrowed

Something obtained or received temporarily with the intention of returning it or its equivalent value.

Interest

The expense associated with lending money or the profit from an investment, usually shown as a percentage.

Days

A unit of time equivalent to 24 hours, generally used to measure durations and intervals.

Investment

The allocation of resources, usually money, in expectation of generating income or profit.