Compare the interest eamed by $10,000 for seven years at 8% simple interest with interest earned by the same amount for seven years at 8% compounded aniually. Why does a difference occur? Click the icon to view the interest and annuity table for discrete compounding when i= 8% per year The simple interest eamed is S (Round to the nearest dollar) The compound interest eamed is $ (Round to the nearest dollar) There is a difference in the amount of interest eamed because allows interest from previous years to earn additional interest, whereas ▼ only considers the original principal. Enter your answer in cach of the answer boxes
Compare the interest eamed by $10,000 for seven years at 8% simple interest with interest earned by the same amount for seven years at 8% compounded aniually. Why does a difference occur? Click the icon to view the interest and annuity table for discrete compounding when i= 8% per year The simple interest eamed is S (Round to the nearest dollar) The compound interest eamed is $ (Round to the nearest dollar) There is a difference in the amount of interest eamed because allows interest from previous years to earn additional interest, whereas ▼ only considers the original principal. Enter your answer in cach of the answer boxes
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Compare the interest eamed by $10,000 for
seven years at 8% simple interest with interest
earned by the same amount for seven years at
8% compounded aniually. Why does a
difference occur? Click the icon to view the
interest and annuity table for discrete
compounding when i= 8% per year The simple
interest eamed is S (Round to the nearest
dollar) The compound interest eamed is $
(Round to the nearest dollar) There is a
difference in the amount of interest eamed
because allows interest from previous years to
earn additional interest, whereas ▼ only
considers the original principal. Enter your
answer in cach of the answer boxes
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