compound interest
Compounding accelerates growth over time. This topic is part of Finance within Government & Society. This page currently draws on 4 supporting questions, with answers and bonus facts available below.
compound interest trivia questions
Compound interest earns interest on principal and what else?
Answer: Previously earned interest
Bonus fact: Compounding accelerates growth over time.
Which grows faster over long periods at the same stated rate, compound or simple interest?
Answer: Compound interest
Bonus fact: Interest-on-interest causes compounding.
What factor makes more frequent compounding increase the effective annual return?
Answer: Interest is added to the balance sooner
Bonus fact: Earlier credited interest begins earning interest itself.
What happens to Graham, the protagonist of "When the Sleeper Wakes"?
Answer: He sleeps for more than two centuries
Bonus fact: When he awakens, compound interest has made him the legal owner of an enormous fortune.