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Tom earned $120 in interest on his savings account last year. Tom has decided to leave the $120 in his account so that he can
Tom earned $120 in interest on his savings account last year. Tom has decided to leave the $120 in his account so that he can earn interest on the $120 this year. This process of earning interest on prior interest earnings is called:
| discounting | ||
| compounding | ||
| duplicating | ||
| indexing |
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