Thomas earned $89 in interest on his savings account last year and has decided to leave the $86 in his account this coming year so it will earn interest. This process of earning interest on prior interest earnings is called:

a. discounting
b. compounding
c. duplicating
d. multiplying
e. indexing

Ans: b. compounding

Business

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Indicate whether the statement is true or false

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Power centers are characterized by the ________

A) lack of an anchor store B) sale of exclusive brands only C) provision of individual entrances to each store D) provision for nonretail activities, such as playgrounds E) absence of any pricing strategies for differentiation

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