Calculating future values
Compute the future value of $1,000 compounded annually For:
a. 10 years at 6 percent.
b. 10 years at 9 percent.
c. 20 years at 6 percent.
d. Why is the interest earned in part (c) not twice the amount earned in part (a)?
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Calculate the amount of interest capitalized for 2011 using the specific interest method.
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