Investor X invested $2,500 ten years ago and expected to have $7,500 today. They have...
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Finance
Investor X invested $ ten years ago and expected to have $ today. They have neither added nor withdrawn any money since their initial investment. All interest was reinvested and compounded annually. As it turns out, they have only $ in their account today. Which one of the following statements must be true?
Multiple Choice
They ignored the Rule of which caused the account to decrease in value.
They did not earn any interest on interest.
The interest rate and the number of compounding per year turned out to be higher than expected.
They earned simple interest rather than compound interest.
They earned a lower interest rate than expected.
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