Suppose $100 is deposited in a bank account paying 5% compounded annually. If the interest earned is X after 5 years, then the interest earned will be 2X after 10 years
Indicate whether the statement is true or false
False. Because of compounding, the balance on which interest is earned grows over time. Thus, the interest earned in years 6 to 10 will exceed the interest earned in years 1 to 5.
Economics
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A) newly issued claims are sold by the borrowing firm to the initial buyer B) already issued claims are sold from one investor to another C) primary inputs like electricity are sold D) a corporate financial manager will resell previously issued shares of stock
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One requirement for an effective nominal anchor is ________
A) price stability B) credibility C) fixed exchange rates D) rational expectations
Economics