Compounding refers directly to Group of answer choices finding the present value of a future sum of money. finding the future value of a present sum of money. changes in the interest rate over time on a bank account or a similar savings vehicle. interest being earned on previously-earned interest.

The correct answer is letter "D": interest being earned on previously-earned interest.

Explanation:

Compounding, also called "interest on interest", refers to a method of calculating interest based on the principal of a capital gain plus interest that was already accrued. It is a form of reinvestment based on accumulated interest. Compound interest could be computed by day, month or year.

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