1. Suppose that Nora invested $800at 8.5% compounded annually for 7years and Patti invested $800 at 8% compounded quarterly for 7 years. At the end of 7years, who will have the most money and by how much (to the nearest dollar)? 2. Use the formula I=Prt  to reach a solution for the following problem.  One month a credit card company charged $9.27in interest on a balance of $3,708. What annual interest rate is the credit card company charging?

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter16: Working Capital Policy And Short-term Financing
Section: Chapter Questions
Problem 14P
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1. Suppose that Nora invested $800at 8.5% compounded annually for 7years and Patti invested $800 at 8% compounded quarterly for 7 years. At the end of 7years, who will have the most money and by how much (to the nearest dollar)?

2. Use the formula I=Prt  to reach a solution for the following problem.  One month a credit card company charged $9.27in interest on a balance of $3,708. What annual interest rate is the credit card company charging?

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