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    Exam 15: The Time Value of Money
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    Interest Is Compounded Annually
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Interest Is Compounded Annually

Question 31

Question 31

Multiple Choice

Interest is compounded annually. What is the total amount of interest on a $7,000 note payable at the end of five years at 8%?


A) $3,000
B) $3,285
C) $7,000
D) $3,791

Correct Answer:

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