Bill Baxter has $24,000 to invest for a year. He can lend it to his sister who

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Bill Baxter has $24,000 to invest for a year. He can lend it to his sister who has agreed to pay 6% simple interest for the year. Or, he can invest it with a bank at 4% compounded quarterly for the year. How much additional interest would the simple interest loan to his sister generate? Find the effective interest rate for both investments?

Posted Date: Nov 02, 2021 10:02 PM

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Bill Baxter has $24,000 to invest for a year. He can lend it to his sister who

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Solution a For sister Principal P 24000 Interest rate r 6 6100 006 Time t 1 year Simple interest SI ... View the full answer

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