SOLUTION: Q#1.
What effect would a decrease in the interest rate have on the future value of a deposit? What effect would an increase in the holding period have on future value?
Q#2.
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What effect would a decrease in the interest rate have on the future value of a deposit? What effect would an increase in the holding period have on future value?
Q#2.
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Question 1196760: Q#1.
What effect would a decrease in the interest rate have on the future value of a deposit? What effect would an increase in the holding period have on future value?
Q#2.
How is the compounding process related to the payment of interest on savings?
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#1.
A decrease in the interest rate would lower future value, while an increase in the holding period will increase future value.
#2.
It is the amount of interest EARNED on a given deposit so it becomes part of the principal, which is the amount of money on which the interest is PAID.
