Explain why this statement is true: “A dollar in hand today is worth more than a dollar to be received next year.” What is compounding? What’s the difference between simple interest and compound interest? What would the future value of $100 be after five years at 10 percent compound interest? At 10 percent simple interest?
Graphic View of the Compounding Process Explain why this statement is true: “A dollar in hand today is worth more than a dollar to be received next year.” What is compounding? What’s the difference between simple interest and compound interest? What would the future value of $100 be after five years at 10 percent compound […]