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    Exam 3: The Time Value of Money Part 1
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    A $100 Deposit Today That Earns an Annual Interest Rate
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A $100 Deposit Today That Earns an Annual Interest Rate

Question 3

Question 3

Multiple Choice

A $100 deposit today that earns an annual interest rate of 10% is worth how much at the end of two years? Assume all interest received at the end of the first year is reinvested the second year.


A) $100
B) $120
C) $121
D) $122

Correct Answer:

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