Question: mpound interest will never exceed the (future value based on simple interest. rocess of earning compound interest allows a depositor or investor to earn interest
mpound interest will never exceed the (future value based on simple interest. rocess of earning compound interest allows a depositor or investor to earn interest onO terest earned in prior periods. is willing to invest $40,000 for eight years, and is an economically rational investor. He has identified three ent alternatives (A, B, and C) that vary in their method of calculating interest and in the annual interest rate Since he can only make one investment during the eight-year investment period, complete the following d indicate whether Dimitri should invest in each of the investments. When calculating each investment's future value, assume that all interest is earned annually. The final value be rounded to the nearest whole dollar. Make this investment? Investment Interest Rate and Method Expected Future Value Yes No 10% simple interest . 6% compound interest 7% compound interest 2014 Save & Continue
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