To make CDs look more attractive than they really are, some banks advertise that their rates are higher than their computers' rates; however, the fine print says that the rate is a simple interest rate. If a person deposits PHP8,000 at 5.5% per year simple interest, what compound interest rate would yield the same amount of money in 3 years?

College Algebra
7th Edition
ISBN:9781305115545
Author:James Stewart, Lothar Redlin, Saleem Watson
Publisher:James Stewart, Lothar Redlin, Saleem Watson
Chapter5: Systems Of Equations And Inequalities
Section: Chapter Questions
Problem 14P: Annual interest yield refer to problem 13 .suppose the investor decides to increase the maximum...
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Problem 3: Simple and Compound Interest
To make CDs look more attractive than they really are, some banks advertise that their
rates are higher than their computers' rates; however, the fine print says that the rate is
a simple interest rate. If a person deposits PHP8,000 at 5.5% per year simple interest,
what compound interest rate would yield the same amount of money in 3 years?
Transcribed Image Text:Problem 3: Simple and Compound Interest To make CDs look more attractive than they really are, some banks advertise that their rates are higher than their computers' rates; however, the fine print says that the rate is a simple interest rate. If a person deposits PHP8,000 at 5.5% per year simple interest, what compound interest rate would yield the same amount of money in 3 years?
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