To take advantage of the power of compounding, what should you do with the money an investment produces?

A. Put it in a savings account.

B. Reinvest it.

C. Spend it.

D. Withdraw it.

Question

Mathematics

Giovanny Gentry

6 September, 23:40

To take advantage of the power of compounding, what should you do with the money an investment produces?

A. Put it in a savings account.

B. Reinvest it.

C. Spend it.

D. Withdraw it.

+3

Answers (1)

Know the Answer?

Kadyn Daniels · Answer 1

B. Reinvest it.

Step-by-step explanation:

To take advantage of the power of compounding, what should you do with the money an investment produces?

The answer is B. Reinvest it.

Reinvesting means to again put that money somewhere, that will yield interest.

In simpler terms, compound interest means interest on interest. In this way, the amount increases at a faster rate as compared to simple interest.

To take advantage of the power of compounding, what should you do with the money an investment produces?A. Put it in a savings account.B. Reinvest it.C. Spend it.D. Withdraw it.

To take advantage of the power of compounding, what should you do with the money an investment produces?

A. Put it in a savings account.

B. Reinvest it.

C. Spend it.

D. Withdraw it.