Question

What is the process of earning interest on interest that you’ve already earned?

A) Interesting
B) Compounding
C) Accumulating
D) Saving

Answer 1

That is called compound interest, so B

Answer 2

Answer: B) Compounding

Explanation:

• The term "Compounding" is generally refers to the exponentially increasing value of an asset value or the invested value due to the interest generated on the sum of a principal amount and accumulated interest.

Therefore, Compounding is the process of earning interest on interest that you’ve already earned .