Simple Interest versus Compound Interest First City Bank pays 6 percent simple interest on its savings account
Question:
Simple Interest versus Compound Interest First City Bank pays 6 percent simple interest on its savings account balances, whereas Second City Bank pays 6 percent interest compounded annually, if you made a $5,000 deposit in each bank, how much more money would you earn from your Second City Bank account at the end of 10 years?
Compound InterestCompound interest (or compounding interest) is interest calculated on the initial principal, which also includes all of the accumulated interest from previous periods on a deposit or loan. Thought to have originated in 17th century Italy, compound...
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The simple interest per year is 5000 06 300 So after 10 ...View the full answer
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Related Book For 
Fundamentals of Corporate Finance
ISBN: 978-0077861629
8th Edition
Authors: Stephen A. Ross, Randolph W. Westerfield, Bradford D.Jordan
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