Allowing the interest that you earn on an investment to stay in the investment and to earn interest on the interest you have already earned is called what?
A)The power of of present value
B)The power of compound interest
C)The power of simple interest
D)The power of time
E)The power of future value

Question

Quizplus · Accepted Answer

The scenario described in the question is an example of compound interest, where the interest earned on the initial investment is reinvested to earn further interest. This allows the investment to grow exponentially over time, resulting in larger returns.

Allowing the Interest That You Earn on an Investment to Stay