Explain the principle of compound growth.

Name: Explain the principle of compound growth.
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Question

Quizplus · Accepted Answer

The Answer is Compound growth is the compounding of interest paid to the investor over given time periods.With each additional time period,interest payments accumulate,are capitalized,and earn more interest,thus multiplying the earning capacity of the investment.The principle of compound growth is the basis for the time value of money.

Explain the Principle of Compound Growth