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Which of the following is FALSE? Compound interest is when an investor earns interest on their interest as well as their initial investment. The investors
Which of the following is FALSE? Compound interest is when an investor earns interest on their interest as well as their initial investment. The investors opportunity cost of capital is the best available expected return offered in the market on an investment of comparable risk and term of the cash flows being discounted. Simple interest is when an investor earns interest on interest for the second year of the investment, and then interest on only the initial investment thereafter
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