Which of the following refers to compounding interest? Group of answer choices Interest earned begins to...
Which of the following refers to compounding interest? Group of answer choices
Interest earned begins to earn additional interest.
Interest that is paid out monthly.
Interest that is paid out annually.
Interest that is paid out quarterly.
Homework Answers
Interest earned begins to earn additional interest is called compounding interest.
Explanation:
In case of compounding interest ,interest is not paid out .Instead, interest is reinvested to earn additional interest that means interest on interest .Therefore other 3 options cannot be answer because interest is paid out monthly or quarterly or annually then it is not compounding interest.
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