How can investors receive compounding returns module 9?

Question

Frida Riggs

Business

27 September, 04:44

How can investors receive compounding returns module 9?

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Earl · Answer 1

They can receive compounding returns By investing their earnings back into their original investment.

By investing their earnings back, the amount of investment that became the base for percentage calculation will became larger. So, even though the rate of interest stay the same, the investor will accumulate larger revenue over time if they decided to re-invest their profit.