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

Question

Quizplus · Accepted Answer

A compound rate of return means that interest is earned on the base amount plus any interest previously earned. This is different from a simple rate of return, where interest is only earned on the base amount. Accrued simply means earned but not yet paid out, annual refers to a yearly rate of return, and fixed refers to a rate that does not change over time.

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