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Jason invested $1,000 four years ago and earns 3 percent interest on his investment. By keeping his interest earnings in the bank account, he increases

Jason invested $1,000 four years ago and earns 3 percent interest on his investment. By keeping his interest earnings in the bank account, he increases the amount of interest he earns each year. Which of the following best describes how he handles his interest income?

Group of answer choices

a. compounding

b. earning no interest

c. discounting

d. earning simple interest

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