QuestionMay 24, 2025

The process of accumulating interest on an investment over time to earn more interest is called: Growth. Compounding. Aggregation. Accumulation.

The process of accumulating interest on an investment over time to earn more interest is called: Growth. Compounding. Aggregation. Accumulation.
The process of accumulating interest on an investment over time to earn more interest is called:
Growth.
Compounding.
Aggregation.
Accumulation.

Solution
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Answer

Compounding. Explanation 1. Identify the correct term The process of earning interest on both the initial principal and the accumulated interest from previous periods is known as **compounding**.

Explanation

1. Identify the correct term<br /> The process of earning interest on both the initial principal and the accumulated interest from previous periods is known as **compounding**.
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