1.

Over a period of few months an investor get benefit of phenomenon called​

Answer»

An investor gets the BENEFIT of a phenomenon called​ compounding.

  • It is the STANDARD method of reinvesting an asset's potential earnings, whether they are from capital GAINS or interest, to produce more earnings over time.
  • The considerable interval between when interest was last compounded and when it will be compounded again is referred to as a compounding phase.
  • Annual compounding, for example, implies interest compounding for an year before it is compounded again. It represents the process of including interest to the principal of a loan.


Discussion

No Comment Found

Related InterviewSolutions