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  3. Study Set
    Finance Applications and Theory
  4. Exam
    Exam 4: Time Value of Money 1: Analyzing Single Cash Flows
  5. Question
    Interest-On-Interest Consider a $500 Deposit Earning 5 Percent Interest Per
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Interest-On-Interest Consider a $500 Deposit Earning 5 Percent Interest Per

Question 2

Question 2

Multiple Choice

Interest-on-Interest Consider a $500 deposit earning 5 percent interest per year for 5 years. How much total interest is earned on the original deposit (excluding interest earned on interest) ?


A) $13.14
B) $25.00
C) $125.00
D) $138.14

Correct Answer:

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