Investment Returns Are Received from Two Sources;interest and Dividends

question 24

True/False

Investment returns are received from two sources;interest and dividends.

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Definitions:

Simple Interest

Interest calculated only on the principal amount, or on that portion of the principal amount that remains unpaid, not including interest on interest.

Rate of Interest

The percentage of principal charged by the lender for the use of its money.

Future Value

The value of an investment at a specific future date, based on its current value and anticipated growth rate.

Future Value

The value of an investment at a specific date in the future, taking into account factors like interest rates or returns.