Question
Tomas earned $89 in interest on his savings account last year and has decided to leave the $86 in his account this coming year so
Tomas earned $89 in interest on his savings account last year and has decided to leave the $86 in his account this coming year so it will earn interest. This process of earning interest on prior interest earnings is called:
discounting.
compounding.
duplicating.
multiplying.
indexing.
Only attempt if you can provide explanation or I will report.
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Pricing And Hedging Financial Derivatives A Guide For Practitioners
Authors: Leonardo Marroni, Irene Perdomo
1st Edition
1119953715, 978-1119953715
