The growth in the future value of an investment over time is not linear, but exponential.

Question

Quizplus · Accepted Answer

The growth in the future value of an investment is not linear, it increases exponentially due to the compounding effect. As the interest or returns earned on the investment are added to the principal amount, they also generate returns, which further contribute to the growth of the investment. This compounding effect accelerates over time, resulting in exponential growth.

The Growth in the Future Value of an Investment Over