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Future value of interest if it is calculated once a year...

This question belongs to Commerce Financial Management
Financial Management
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Future value of interest if it is calculated once a year is classified as

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Correct Answer: Option B
Future value of interest if it is calculated once a year is classified as annual compounding. Future value is the value of an asset at a specific date. It measures the nominal future sum of money that a given sum of money is "worth" at a specified time in the future assuming a certain interest rate, or more generally, rate of return; it is the present value multiplied by the accumulation function.
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