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Test Your Knowledge
Earn 100 Diamonds for every perfect score!
Question 1:
What is compound interest?
A. Interest earned only on the initial principal
B. Interest earned on both the initial principal and the accumulated interest
C. Interest earned on the initial principal and quarterly reinvestments
Question 2:
Which of the following is NOT a key factor that influences the growth of compound interest?
A. Initial investment (principal)
B. Interest rate
C. Inflation rate
Question 3:
In compound interest, what happens to the value of the investment over time?
A. It decreases as interest is paid out
B. It grows exponentially as interest is reinvested
C. It remains constant because of the fixed interest rate
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