Question
Compound interest calculated each compounding period establishes values for the amount of an investment that form a geometric sequence. True False
Solution
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(198 Votes)
Noa
Master ยท Tutor for 5 years
Answer
True.Compound interest means that interest earned in one period is added to the principal, and subsequent interest calculations are performed on the combined amount (principal plus interest). This leads to exponential growth, which is characteristic of a geometric sequence.