How can investors receive compounding returns? everfi

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Business

Alijah Pineda

5 May, 02:03

How can investors receive compounding returns? everfi

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Jamarion Mccullough · Answer 1

Investors receive compounding returns when they reinvest their earnings into the original investment. A compounding return is a rate of return that shows the gains and losses on the originial investment. This type of return is shown in a percentage and it gives a way for investors to understand how their investments are doing.