A 10 percent rate of interest will increase the value of an asset more quickly if the interest is
compounded.

Name: A 10 percent rate of interest will increase the value of an asset more quickly if the interest is compounded.
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Question

Quizplus · Accepted Answer

Compounding interest means that the interest earned is added to the principal, and then the next period's interest is calculated based on the higher balance. This leads to exponential growth of the asset's value over time, which will be faster than simple interest.

A 10 Percent Rate of Interest Will Increase the Value