You can invest in an account that pays simple interest or an account that pays compound interest. In either case, you plan to invest $3,700 today and both accounts have an annual interest rate of 7 percent. How much more interest will you receive in the 9th year in the account that pays compound interest? Multiple Choice $198.86 $199.68 $186.01 $203.17 $259.00

You can invest in an account that pays simple interest or an account that pays compound interest. In either case, you plan to invest $3,700 today and both accounts have an annual interest rate of 7 percent. How much more interest will you receive in the 9th year in the account that pays compound interest? Multiple Choice $198.86 $199.68 $186.01 $203.17 $259.00

Economics Today and Tomorrow, Student Edition

1st Edition

ISBN:9780078747663

Author:McGraw-Hill

Publisher:McGraw-Hill

Chapter6: Saving And Investing

Section6.2: Investing: Taking Risks With Your Savings

Problem 4R

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