A beginning accounting student has just been introduced to present and future values analysis and has been told that it is based on compound interest, not simple interest.The student is confused about the differences between the two interest methods.
Required:
Explain the difference between the two methods using a single deposit of $1, 000 for two years at 10% interest.

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The Answer of A beginning accounting student has just been introduced to present and future values analysis and has been told that it is based on compound interest, not simple interest.The student is confused about the differences between the two interest methods.
Required:
Explain the difference between the two methods using a single deposit of $1, 000 for two years at 10% interest.

A Beginning Accounting Student Has Just Been Introduced to Present