Question

how will compound growth impact an account balance over time?
it will lead to greater growth.
it will minimize risk.
it will cause depreciation.
it will prevent inflation.

Explanation:

Compound growth (or compound interest) means that interest is earned on both the initial principal and the accumulated interest from previous periods. Over time, this leads to exponential growth of the account balance, resulting in greater growth compared to simple growth where only the principal earns interest. Minimizing risk, causing depreciation, and preventing inflation are not direct effects of compound growth on an account balance.

Answer:

A. It will lead to greater growth.