Multiple Choice
A two-year investment of $200 is made today at an annual interest rate of 6%.Which of the following statements is TRUE?
A) The interest earned in year two is $12.00 and year one is $12.72.
B) The interest earned in year one is $12.00 and year two is $12.72.
C) The FV is $224.00.
D) The future value would be greater if the interest rate were lower.
Correct Answer:
Verified
Correct Answer:
Verified
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