George Green wishes to invest $8000,00 that he saved from his summer job. His bank offers 3.75%
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Question:
George Green wishes to invest $8000,00 that he saved from his summer job. His bank offers 3.75% for a one-year term or 3.5% for a six month term.
(a) How much will George receive (capital plus interest) after one year if he invests at the one-year rate? Round to nearest one.
(b) How much will he receive (capital plus interest) after one-year if he invests for six months at a time at 3.5% each time? Round to nearest 100th.
(c) What would the one-year rate have to be to yield the same amount of interest when investing for six months at a time at 3.5% each time? Give your answer as a percentage round to nearest 100th.
Related Book For
The Economics of the Environment
ISBN: 9780321321664
1st edition
Authors: Peter Berck, Gloria Helfand
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