Compounding is:
A)beneficial to savers, but costly to borrowers.
B)beneficial to borrowers, but costly to savers.
C)beneficial to borrowers and savers alike.
D)costly to both borrowers and savers.

Question

Quizplus · Accepted Answer

Compounding benefits savers by allowing them to earn interest on their interest, effectively increasing their savings over time. For borrowers, however, compounding increases the total amount of interest they must pay back, making it costly.

Compounding Is