How does compound interest differ from simple interest

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1. I have $2000 that I would like to invest and I want my investment to grow at 6.5% every year for the next 6 six years. What will my future value be? Using the formulas my return will be $2,918.

2. What does it mean to compound interest? How does compound interest differ from simple interest?

3. In general, what is the future value of $1 invested in r per period for t periods?

Reference no: EM131956520

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