A student has received an inheritance and has $8000 to invest. Interest rates are currently 3.5% pa

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A student has received an inheritance and has $8000 to invest. Interest rates are currently 3.5% pa and they wish to invest for 3 years.

a) Bank A compounds interest annually. What will the student's investment be worth at the end of the period?

b) Bank B compounds interest monthly. What will the student's investment be worth at the end of the period?

c) Which investment option – Bank A or Bank B - would you recommend and why?

Related Book For answer-question

Business Statistics in Practice

ISBN: 978-0077404741

6th edition

Authors: Bruce Bowerman, Richard O'Connell

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Posted Date: Jan 02, 2021 07:04 PM

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A student has received an inheritance and has $8000 to invest. Interest rates are currently 3.5% pa

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Step 14 Amount Invested 8000 Interest Rate 350 Number of Years 3 Years Step 24 a Inve... View the full answer

Business Statistics in Practice

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