When your investment compounds, your money will grow in a(n) ________ fashion.
A) linear
B) exponential
C) static
D) implied

Question

Quizplus · Accepted Answer

When your investment compounds, your money grows exponentially because you earn interest on both the initial principal and the accumulated interest from previous periods. This process results in an increasing rate of growth over time, unlike linear growth, where the increase is constant.

When Your Investment Compounds, Your Money Will Grow in A(n)