Concept explainers
Determine whether each of the following statements is true or false, and explain why.
1. For a particular interest rate, compound interest will accumulate faster than simple interest.
Whether the statement is true or false and explains the reason.
Answer to Problem 1RE
The statement is true.
Explanation of Solution
The given statement is, “For a particular interest rate, compound interest will accumulate faster than simple interest.”
The interest rate given in the compound interest is considered as the nominal or stated rate of interest.
If the interest rate is equal for both the compound and simple interest, then the compound interest will accumulate faster than the simple interest is true.
Therefore, the statement is true.
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Chapter 5 Solutions
Finite Mathematics and Calculus with Applications Books a la Carte Plus MyLab Math Package (10th Edition)
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