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True False same amount of interest as an account earning compound interest. All other factors being equal, when interest is paid annually, both the simple

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True False same amount of interest as an account earning compound interest. All other factors being equal, when interest is paid annually, both the simple interest and the compound interest methods will generate different amounts of earned interest by the end of the first year. The process of earning compound interest allows a depositor or investor to earn interest on any interest earned in prior periods. Dmitri is willing to invest $25,000 for two years, and is an economically rational investor. He has identified three investment alternatives ( X, Y, and Z ) that vary in their method of calculating interest and in the annual interest rate offered. Since he can only make one investment during the two-year investment period, complete the following table and indicate whether Dmitri should invest in each of the investments. Note: When calculating each investment's future value, assume that all interest is compounded annually. The final value should be rounded to the nearest whole doliar

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