The Earning of Interest on Interest Over Time Is Called

question 57

Multiple Choice

The earning of interest on interest over time is called

• A) an annuity.
• B) an ordinary annuity.
• C) compounding.
• D) present value.

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Definitions:

Confidence interval

An assortment of values, from sample-based statistics, that is speculated to contain the unseen population parameter value.

Population standard deviation

A measure of the dispersion or variability of a set of data points in a population, indicating how much the individual data points differ from the population mean.

Sample mean

The average value of the sample set, calculated as the sum of all observations divided by the number of observations.

Population proportion

The ratio of members in a population that have a particular attribute or characteristic, represented as a fraction or percentage of the total.