Suppose that $1,000 is deposited into an account paying simple interest of 8% annually. At the end of five years, the account will beworth $1,400.TrueFalse

Principal Amount = p = $1000Interest Rate = r = 8%Time = t = 5 YearsExpected Future Value = $1400

Answered: Suppose that $1,000 is deposited into…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Suppose that $1,000 is deposited into an account paying simple interest of 8% annually. At the end of five years, the account will be worth $1,400. True False