question 4 of 8\njorge and alma are talking about savings and investing. alma explains that she puts 15% of…

question 4 of 8\njorge and alma are talking about savings and investing. alma explains that she puts 15% of her pretax pay into her retirement savings. she explains that not only does she have that money, but she also earns interest on both the money shes saved and the previous interest shes accrued. what is alma describing?\ninflation\nprincipal\ncompound interest\nwithdrawal penalty

question 4 of 8\njorge and alma are talking about savings and investing. alma explains that she puts 15% of her pretax pay into her retirement savings. she explains that not only does she have that money, but she also earns interest on both the money shes saved and the previous interest shes accrued. what is alma describing?\ninflation\nprincipal\ncompound interest\nwithdrawal penalty

Answer

Brief Explanations:

Inflation is the general increase in prices. Principal is the initial amount of money saved or invested. A withdrawal penalty is a fee for taking money out early. Compound interest is interest earned on both the initial principal and the accumulated interest from previous periods, which matches Alma's description.

Answer:

C. Compound interest