Compounding Works Best If You Invest

question 30

Multiple Choice

Compounding works best if you invest

• A) Over the short term
• B) For the long term
• C) In money market accounts
• D) In CollegeSure CD

---

Definitions:

Break-even Point

The point at which total costs and total revenue are equal, meaning there is no net loss or gain, and the business is not making a profit.

Materials Cost

The expense associated with the raw materials and supplies used in the production of goods or services.

Labor

The work performed by individuals that contributes to the production of goods or services in an economy, often categorized as manual or skilled tasks.