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Steve is offered an investment where for every $ 1 . 0 0 invested today, he will receive $ 1 . 1 0 at the

Steve is offered an investment where for every $1.00 invested today, he will receive $1.10 at the end of each of the next five years. Steve concludes that in five years he will have $1.10 for every $1.00 invested and that this investment will increase his personal value. What is Steve's major error in reasoning when making this decision?

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