$100 Invested at a Rate of 5% for 10 Years

question 32

True/False

$100 invested at a rate of 5% for 10 years has the same future value as $100 invested at 10% compounded annually for 5 years.

---

Definitions:

Interest

The cost of borrowing money, typically expressed as an annual percentage of the loan amount.

Net Income

The total profit of a company after all expenses and taxes have been subtracted from revenue.

Profits

The financial gain obtained when the revenue from business activities exceeds expenses, costs, and taxes.

Retained Earnings

The portion of net income that is kept within a company rather than distributed to shareholders as dividends.