A bank investment of $100 is made by Alpha which provides an annual return of 8% (simple interest) and principle plus interest is left in the bank for 5 years to accumulate. Beta also invests $100 at this bank for a term of 5 years and earns compound interest compounded annually. At the end of 5 years when the investments are cashed in:

Alpha receives more

They receive identical amounts

Beta receives more

Alpha receives $164

There is not enough information provided to solve this problem.

Answer rating: 100% (QA)

The detailed answer for the above question is provided below There i... View the full answer