A(n) ________ rate of return means that interest is earned on the base amount plus any interest previously earned.

Question

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Compound rate of return means that interest is earned on the base amount plus any interest previously earned. Accrued rate of return is the amount of interest that has accumulated over time but has not yet been paid or withdrawn. Annual, quarterly, and monthly refer to the frequency at which interest is calculated or paid, but they do not specify whether the interest is compounded or not.

A(n) ________ Rate of Return Means That Interest Is Earned