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1. The process for converting present values into future values is called ______. 2. Investments and loans base their interest calculations on one of two

1. The process for converting present values into future values is called ______.

2. Investments and loans base their interest calculations on one of two possible methods: the ____ interest and the ____ interest methods. Both methods apply the three variables (the amount of principal, the interest rate, and the investment or deposit period) to the amount deposited in order to compute the amount of interest. The two methods differ in their relationship between the variables, however.

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