The following is true about a specific future value A....
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Finance
The following is true about a specific future value
A.
Compounding interest does not affect the time needed to get to that value
B.
The lower the rate, the shorter the time required to get to that value
C.
The time required to get to that value is longer with compound interest than with simple interest
D.
The time required to get to that value is directly related to the interest rate
E.
The time required to get to that value decreases as the amount invested increases.
The Alpha Fund pays 5.5%, compounded annually. The Beta Fund pays the same rate but in simple interest. To be paid the same future value in 5 years, an investment today
A.
Is the same for both funds because they both pay the same rate of interest.
B.
Is the same for both funds because they both pay simple interest.
C.
Is the same for both funds because the time period is the same for both investments
D.
Has to be greater if you invest in the Alpha Fund
E.
Has to be greater if you invest in the Beta Fund
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