a, You put $1000 dollars into a savings account at your local credit union which has simple compounding at the end of each year. The annual interest rate is 2 percent. After 10 years what is the difference between continuous compounding and simple compounding at the end of each year? $2.40 O $2.41 $2.42 O $2.43 $2.44 O $2.45 O $2.46 O $2.47 $2.48 O $2.49 O $2.50 b. For the situation in problem 1, how long would it take to triple your money with simple compounding? 50 years 51 years 52 years 53 years 54 years 55 years 56 years 57 years 58 years 59 years О 60 years
a, You put $1000 dollars into a savings account at your local credit union which has simple compounding at the end of each year. The annual interest rate is 2 percent. After 10 years what is the difference between continuous compounding and simple compounding at the end of each year? $2.40 O $2.41 $2.42 O $2.43 $2.44 O $2.45 O $2.46 O $2.47 $2.48 O $2.49 O $2.50 b. For the situation in problem 1, how long would it take to triple your money with simple compounding? 50 years 51 years 52 years 53 years 54 years 55 years 56 years 57 years 58 years 59 years О 60 years
Brief Principles of Macroeconomics (MindTap Course List)
8th Edition
ISBN:9781337091985
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter9: The Basic Tools Of Finance
Section: Chapter Questions
Problem 1CQQ
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Refer to question 1 and do a, b, c
Transcribed Image Text:a, You put $1000 dollars into a savings account at your local credit union which has simple compounding at the end
of each year. The annual interest rate is 2 percent. After 10 years what is the difference between continuous
compounding and simple compounding at the end of each year?
$2.40
O $2.41
$2.42
O $2.43
$2.44
O $2.45
O $2.46
O $2.47
$2.48
O $2.49
O $2.50
b. For the situation in problem 1, how long would it take to triple your money with simple compounding?
50 years
51 years
52 years
53 years
54 years
55 years
56 years
57 years
58 years
59 years
О 60 years
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