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Assume you invest $1,000 at 2% for 5 years. Interest is paid at the end...

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Accounting

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Assume you invest $1,000 at 2% for 5 years. Interest is paid at the end of each year, and you leave the interest in the investment. How much will the investment grow to by the end of 5 years? Show your calculation. We will not have future value tables on the final exam, so a problem like this would show factors and you would chose the correct one for your calculation. Future Value of $1 Interest Rate Interest Periods Factor 2% 1 1.0200 2% 5 1.1041 Future Value of An Annuity Interest Rate Interest Periods Factor 2% 1 1.0000 2% 5 5.2040

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