A student has received an inheritance and has $8000 to invest. Interest rates are currently 3.5% pa
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Question:
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
Business Statistics in Practice
ISBN: 978-0077404741
6th edition
Authors: Bruce Bowerman, Richard O'Connell
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