the missing in places. However, if you compute any interest factors as an interm

Question

the missing in places. However, if you compute any interest factors as an intermediate step in your calculations, round them to four in the conversation that follows. Round your final answer to all computations to two decimal Dakota So, why is it important to be able to caloul ate the future value of some amount invested? Gabriella First, remember that the amount invested is usually called and the amount earned during the investment period is called calculate a future value so that you can know in advance what a given amount of principal will be worth after earningspeched for a known value of the investment, whereas the amount reailzed after the passage of t period of time is called its value. But what causes the present and future values to values? Two things cause the present and future values to be different amounts. First, the equal to, or less than the present value. Second, the method used to calcuiate the interest amount by which the future value differs from the present value. Gabriella earned during the investment period causes the future value to be greater than, the Dakota That makes sense, and I remember Dr. Smith saying that the difference between simple and interest, interest is earned solely on the interest, interest is earned not only on the compound interest is that in the case of principal, but in the case of principal but also on previously eamed Very goodI So, here's your next question. Assuming equal amounts of principal, interest rates, and investment periods, which type of account should produce the greater future value: the account earning simple interest or the account earning compound interest? Gabriella oe@e 9 here to search

Explanation / Answer

Gabrellia:

a)Amount invested -Investment

b)Return

c)specified return (interest)

d)periods

Dakota :

e)present

f)Future

Gabrellia:

g)interest/return

h)compound

Dakota

i)Simple

j)compound

Gabrellia:

k)account earning compound interest because interest is also earned interest amount.

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