Question: Compounding. Define compounding. How is it used in financial planning? Compounding is the: (Select the best answer below.) A. process by which the money

Compounding. Define compounding. How is it used in financial planning? Compounding is the: (Select the best answer below.) A. process by which the money you are holding accumulates interest over time. OB. way in which you determine the present value of a sum. OC. way in which you determine the present value of a future gift. OD. process by which you determine how much you need today to have a certain amount in the future. Compounding can help you: (Select the best answer below.) OA. predict how much you have available to save. B. find out whether you should accept a sum of money now or in the future. OC. forecast the funds that will be available to you at retirement. OD. identify how much a future value is worth today.

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