4. a) You are considering investing $4,500 at an interest rate of 8.5% compounded annually for five years or investing the $4,500 at 9% per year simple interest for five years. Which option is better? b) You are considering investing $1,000 at an interest rate of 6.5% compounded annually for five years or investing the $1,000 at 6.8% per year simple interest for five years. Which option is better?

4. a) You are considering investing $4,500 at an interest rate of 8.5% compounded annually for five years or investing the $4,500 at 9% per year simple interest for five years. Which option is better? b) You are considering investing $1,000 at an interest rate of 6.5% compounded annually for five years or investing the $1,000 at 6.8% per year simple interest for five years. Which option is better?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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