First City Bank pays 7 percent simple interest on its savings account balances, whereas Second City Bank
Question:
First City Bank pays 7 percent simple interest on its savings account balances, whereas Second City Bank pays 7 percent interest compounded annually. If you made a deposit of $7,900 in each bank, how much more money would you earn from your Second City Bank account at the end of 10 years?
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The time line for the cash flows is The simple interest per year is 7900 07 ...View the full answer
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Related Book For 
Essentials of Corporate Finance
ISBN: 978-1260013955
10th edition
Authors: Stephen Ross, Randolph Westerfield, Bradford Jordan
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