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  3. Study Set
    Financial and Managerial Accounting Study Set 8
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    Exam 27: the Time Value of Money: Future Amounts and Present Values
  5. Question
    Compound Interest
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Compound Interest

Question 2

Question 2

Multiple Choice

Compound interest:


A) Is interest only on the principal amount for several years.
B) Is interest on the principal and previously earned interest.
C) Is interest only on previous interest excluding the principal.
D) Is equal to simple interest received for several years.

Correct Answer:

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