Assume you have CAD 3,000 today and you can save the money in an account that...

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Assume you have CAD 3,000 today and you can save the money in an account that gives a compound annual interest of 3.5% or you can save the money in an account that gives a simple annual interest of 4%. You want to leave the money untouched in either of the accounts for 4 years. Which account will you chose and why? Assume you have CAD 3,000 today and you can save the money in an account that gives a compound annual interest of 3.5% or you can save the money in an account that gives a simple annual interest of 4%. You want to leave the money untouched in either of the accounts for 4 years. Which account will you chose and why?

Answer rating: 100% (QA)

To determine which account to choose we need to calculate the future value of the investment after f... View the full answer