Question

if you want to take advantage of compound interest, what should you do when an investment produces interest? a. use the interest to pay your bills. b. reinvest the interest. c. put the interest in a savings account. d. put the interest in a checking account.

Explanation:

be calculated on the larger total sum, which is the core mechanism to benefit from compound interest. The other options remove the interest from the investment, preventing this compounding effect.

Answer:

be calculated on the larger total sum, which is the core mechanism to benefit from compound interest. The other options remove the interest from the investment, preventing this compounding effect.