2
QuizMultiple Choice

Investment Strategies — Cumulative exam

Question 2 • OK-Personal Financial Literacy S1 – EDGNTY-83861 26-27

Compound interest is usually better than simple interest because it pays

Answer
A
interest on the principal and the interest earned in each period.
B
interest on the entire principal rather than the interest in each period.
C
more, as it is matched by an employer’s 401k contribution.
D
more often throughout the year rather than once a year.
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Compound interest is usually better than simple…