Compound Interest Describes Increases in Value When Interest Is Paid

question 52

Multiple Choice

Compound interest describes increases in value when interest is paid, or compounded, on:

• A) Only the original amount invested
• B) Only the previously accumulated interest payments
• C) The original amount invested and previously accumulated interest payments
• D) The original amount invested minus any previously accumulated interest payments

---

Definitions:

Income Levels

The categories of income range that differentiate between groups of people within a society, often used to indicate economic disparity.

Tax Relationship

The correlation between various types of taxes and how they interact with individuals or businesses.

Elasticity of Supply

The sensitivity of the supply volume of an item to changes in its pricing.

Consumer

An individual who purchases goods or services for personal use rather than for manufacturing or resale.