Suppose you deposit $1,000 in a bank savings account that pays interest at a rate of...
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Suppose you deposit $1,000 in a bank savings account that pays interest at a rate of 8% per year. Assume that you don't withdraw the interest earned at the end of each period (year), but instead let it accumulate. (a) How much would you have at the end of year three with (a) simple interest? (b) compound interest? Suppose you deposit $1,000 in a bank savings account that pays interest at a rate of 8% per year. Assume that you don't withdraw the interest earned at the end of each period (year), but instead let it accumulate. (a) How much would you have at the end of year three with (a) simple interest? (b) compound interest?
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Answer 1A Simple Intrest Equation A P1 rt Where A Total Accrued Amount principal interest P Prin... View the full answer
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Data Analysis and Decision Making
ISBN: 978-0538476126
4th edition
Authors: Christian Albright, Wayne Winston, Christopher Zappe
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