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You deposit $500 in a bank in a 10-year time deposit. With a time deposit you cannot withdraw funds from the account until the end
You deposit $500 in a bank in a 10-year time deposit. With a time deposit you cannot withdraw funds from the account until the end of the term. Interest in the account is compounded semiannually (mequals=2) at the annual nominal rate of 10%. In the final compounding interval, what is the dollar amount of interest that is earned from earlier interest (rather than off of the original principal)?
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