which of the following statements are true? multiple select question. the more frequently interest is compounded, the faster the balance grows. interest may only be compounded annually, quarterly or monthly. discounting is another term for compound interest. compound interest means that interest is paid on interest.

Compound interest is a type of interest that is calculated on the principal of a loan or investment, as well as any accrued interest. When interest is compounded, it is added to the principal, which means that the balance of the loan or investment grows. As the balance grows, the interest that is paid on it also grows, which means that interest is being paid on interest.

The more frequently interest is compounded, the faster the balance grows: When interest is compounded more frequently, it is added to the principal more often, which means that the balance grows faster. For example, if interest is compounded monthly, the balance will grow faster than if it is compounded annually because the interest is being added to the principal more frequently.

Interest may only be compounded annually, quarterly, or monthly: Interest can be compounded at different frequencies, depending on the terms of the loan or investment. For example, it may be compounded annually, which means that the interest is added to the principal once per year. It may also be compounded quarterly, which means that the interest is added to the principal four times per year, or monthly, which means that the interest is added to the principal twelve times per year.

Discounting is another term for compound interest: Discounting is the process of calculating the present value of a future payment or series of payments. It is similar to compound interest in that it involves calculating the value of a payment over time, taking into account the time value of money.

Compound interest means that interest is paid on interest: When interest is compounded, it is added to the principal, which means that the balance of the loan or investment grows. As the balance grows, the interest that is paid on it also grows, which means that interest is being paid on interest. This is what is meant by compound interest.

Hence, all of the statements regarding compound interest are true.

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