The Longer Money Can Earn Interest

question 46

Multiple Choice

The longer money can earn interest,

• A) the greater the interest earned on the original deposit exceeds the interest-on-interest.
• B) the greater the compounding effect.
• C) the greater the present value must be to reach a financial goal.
• D) the greater the risk to the investor of not reaching a financial goal.

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Definitions:

Urie Bronfenbrenner

An influential developmental psychologist who developed the Ecological Systems Theory to explain how the inherent qualities of a child and the environment interact to influence how the child grows and develops.

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The complex networks of biological, physical, and chemical components interacting in various ways to sustain life on Earth, often analyzed in the context of ecosystems.

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The process of change that children go through as they progress in development or move between different stages of education or life situations.

Divorce

The legal dissolution of a marriage by a court or other competent body.