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Suppose we assume
,
,
,and the real interest rate rises to
) The economy would
Maturity Value
The amount that will be received at the maturity date of an investment, including the principal and any accrued interest.
Future Value
The value of an asset or cash at a specified date in the future calculated based on assumed rate of growth or interest.
Compound Interest
Interest calculated on the initial principal and also on the accumulated interest of previous periods.
Future Value
The value of an investment at a specific future date, accounting for interest or returns earned over time.
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