Growing money by earning interest on interest is called

A) harvesting
B) diversification
C) compounding
D) liquidity

C

Business

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What will be an ideal response?

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Jane is offered a pension plan through her employer. The plan agrees that if she will deposit 6% of her salary to a retirement account, the employer will deposit a matching amount

When Jane retires, whatever money is in the account will belong to her. What is the proper name for this type of pension plan? A) A vested pension plan B) A defined contribution plan C) A defined benefit plan D) A tax-deferred savings plan (401(k))

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