Question: Problem 4-1 Simple Interest versus Compound Interest [LO 1] First City Bank pays 7 percent simple interest on its savings account balances, whereas Second City

Problem 4-1 Simple Interest versus Compound Interest [LO 1] First City

Problem 4-1 Simple Interest versus Compound Interest [LO 1] First City Bank pays 7 percent simple interest on its savings account balances, whereas Second City Bank pays 7 percent interest compounded annually. If you made a deposit of $10,000 in each bank, how much more money would you earn from your Second City Bank account at the end of 8 years? Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16

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