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An investor deposited $1,000 in an interest-bearing account today.

AHIP AHM-520 Full Course Access
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An investor deposited $1,000 in an interest-bearing account today. That sum will accumulate to $1,200 two years from now. One true statement about this transaction is that:

A.

The process by which the original $1,000 deposit grows to $1,200 is known as compounding

B.

$1,200 is the present value of the $1,000 deposit

C.

The $200 increase in the deposit’s value is its incremental cash flow

D.

The $200 difference between the original deposit and the accumulated value of the deposit is known as the deposit’s discount

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