Explain why this statement is true: “A dollar in hand today is worth more than a dollar to be received next year.”What is compounding? What’s the difference between simple interest and compound interest?

Finance by Geoffrey

Compounding

Explain why this statement is true: “A dollar in hand today is worth more than a dollar to be received next year.”What is compounding? What’s the difference between simple interest and compound interest? What would the future value of $100 be after five years at 10 percent compound interest? At 10 percent simple interest? ($161.05; $150.00) Suppose you currently have $2,000 and plan to purchase a three year certificate of deposit (CD) that pays 4 percent interest compounded annually. How much will you have when the CD matures?