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Practical Business Math Procedures Study Set 2
Quiz 12: Compound Interest and Present Value
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Question 1
True/False
The number of periods in compounding is found by multiplying the number of years times the number of times compounded per year.
Question 2
True/False
The rate for a table lookup on a $4,000, 12% investment compounded quarterly for four years is 4%.
Question 3
True/False
Compounding results in earning higher interest than simple interest.