Bank A pays 8% simple interest on its savings account balances. Bank B pays 7% interest compounded annually. If you made a $5,000 deposit in each bank, which bank provides you with more money at the end of 10 years?
Bank A pays 8% simple interest on its savings account balances. Bank B pays 7% interest compounded annually. If you made a $5,000 deposit in each bank, which bank provides you with more money at the end of 10 years?
Chapter5: The Time Value Of Money
Section: Chapter Questions
Problem 25P
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Bank A pays 8% simple interest on its savings account balances. Bank B pays 7% interest compounded annually. If you made a $5,000 deposit in each bank, which bank provides you with more money at the end of 10 years?
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