Compound growth occurs when the initial value of a number increases or decreases each period by the factor (1 + growth rate).

Name: Compound growth occurs when the initial value of a number increases or decreases each period by the factor (1 + growth rate).
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Question

Quizplus · Accepted Answer

Compound growth is calculated by multiplying the initial value by the growth rate plus 1, repeated for each period. This means that the initial value increases or decreases each period by the factor (1 + growth rate), making the statement true.

Compound Growth Occurs When the Initial Value of a Number