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If You Were to Invest $10,000 for Two Years and the Interest

Question 68

Essay

If you were to invest $10,000 for two years and the interest rates for each of those years are 4.5% and 4.65% respectively,how much interest would you earn from the end of year one until the end of year two? Assume interest compounds annually.

Correct Answer:

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Y1 = $10,000(1 + 0.045)= $10,45...

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