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You Invest $1,000 in an Interest Paying Account

Question 1

Multiple Choice

You invest $1,000 in an interest paying account.At the end of the first year you have $1,050, and at the end of the second year you have $1,102.50.This is an example of which of the following concepts?


A) Compound interest
B) Simple interest
C) Present value
D) Changes in purchasing power

Correct Answer:

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