Abigail invested $77,000 in an account paying an interest rate of 8\tfrac{3}{8}883% compounded annually. Gavin invested $77,000 in an account paying an interest rate of 8\tfrac{1}{8}881% compounded monthly. After 14 years, how much more money would Gavin have in his account than Abigail, to the nearest dollar?

Abigail invested $77,000 in an account paying an interest rate of 8\tfrac{3}{8}883% compounded annually. Gavin invested $77,000 in an account paying an interest rate of 8\tfrac{1}{8}881% compounded monthly. After 14 years, how much more money would Gavin have in his account than Abigail, to the nearest dollar?

EBK CFIN

6th Edition

ISBN:9781337671743

Author:BESLEY

Publisher:BESLEY

Chapter4: Time Value Of Money

Section: Chapter Questions

Problem 1PROB

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