You have $480 to put into a savings account, and a bank offers you two options: Account A pays 3.1% simple interest Account B pays 2.9% interest compounded monthly How long will it take each account to grow to $960? Enter the amount of time for whichever account takes longer to grow to $960 below. Round your answers to two decimal places if necessary.

Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)
7th Edition
ISBN:9780357033609
Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Publisher:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Chapter4: Managing Your Cash And Savings
Section: Chapter Questions
Problem 7FPE: Calculating interest earned and future value of savings account. If you put 6,000 in a savings...
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You have $480 to put into a savings account, and a bank offers you two options:

  • Account A pays 3.1% simple interest
  • Account B pays 2.9% interest compounded monthly

How long will it take each account to grow to $960? Enter the amount of time for whichever account takes longer to grow to $960 below. Round your answers to two decimal places if necessary.

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