Short Answer
$10,000 is invested at 7% compounded annually. Over the next years, how much of the investment's increase in value represents:
a. Earnings strictly on the original $10,000 principal?
b. Earnings on re-invested earnings? (This amount reflects the cumulative effect of compounding.)
Correct Answer:
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a) $17,500...View Answer
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Correct Answer:
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View Answer
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