Question

what is the impact of compound interest?○ earn interest in both the money you have saved and the interest you have earned.○ the longer it is left alone, the more money you will have○ will lead to greater growthquestion 41 ptswhich of the following is an increase in the cost of goods and services?○ financial risk○ inflation risk○ market risk

Explanation:

For the first question: Compound interest is defined as interest calculated on the initial principal and also on the accumulated interest from previous periods. This structure means it earns interest on both saved principal and prior interest, grows more over time, and results in greater overall growth compared to simple interest.
For Question 4: Inflation refers to the sustained increase in the general price level of goods and services in an economy over time, so inflation risk relates to this increase in costs. Financial risk is a broad term for potential financial losses, and market risk is the risk of losses from market fluctuations, neither of which directly describe rising goods/service costs.

Answer:

1. Earn interest in both the money you have saved and the interest you have earned.
2. The longer it is left alone, the more money you will have
3. Will lead to greater growth

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1. Inflation Risk