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    Fundamentals Of Corporate Finance Study Set 21
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    Exam 5: Introduction to Valuation: the Time Value of Money
  5. Question
    Jennifer Invested $2,000 in an Account That Pays 3% Simple
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Jennifer Invested $2,000 in an Account That Pays 3% Simple

Question 2

Question 2

Multiple Choice

Jennifer invested $2,000 in an account that pays 3% simple interest. How much more could she have earned over a six-year period if the interest had compounded annually?


A) $28.10
B) $29.18
C) $31.50
D) $33.33
E) $34.67

Correct Answer:

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