question 11 1 pts compounding interest works in your favor to make you money when you are earning interest…

question 11 1 pts compounding interest works in your favor to make you money when you are earning interest on savings or investments and it works against you when you are paying the interest on loans. true false

question 11 1 pts compounding interest works in your favor to make you money when you are earning interest on savings or investments and it works against you when you are paying the interest on loans. true false

Answer

Brief Explanations:

When earning compound - interest on savings or investments, the interest is added to the principal and future interest is calculated on the new, larger amount, growing the money faster. When paying compound - interest on loans, the interest is added to the principal and future interest is calculated on the higher amount, increasing the debt.

Answer:

True