__________ is the arithmetic process whereby an initial value increases or grows at a compound interest rate over time to reach a value in the future.
A) Discounting
B) Future value
C) Inflation
D) Compounding

Question

Quizplus · Accepted Answer

Compounding involves the process of earning interest on both the principal amount and the interest earned. Over time, this leads to exponential growth in the value of the initial investment or principal. Therefore, compounding is the correct answer for the given description.

__________ Is the Arithmetic Process Whereby an Initial Value Increases