$5000 at time 0 is equivalent to: Select one: a. $7800 at the end of year 7, i=8% simple interest rate b. $7346.64 at the end of year 5, i=8% compound interest rate C. $6800 at the end of year 6, i-6% simple interest rate d. all the above
$5000 at time 0 is equivalent to: Select one: a. $7800 at the end of year 7, i=8% simple interest rate b. $7346.64 at the end of year 5, i=8% compound interest rate C. $6800 at the end of year 6, i-6% simple interest rate d. all the above
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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![$5000 at time 0 is equivalent to:
Select one:
a. $7800 at the end of year 7, i=8% simple interest rate
O b. $7346.64 at the end of year 5, i=8% compound interest rate
C.
$6800 at the end of year 6, i=6% simple interest rate
d. all the above](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F154747ec-3781-4b73-ba9f-6413b5e93e41%2F07938550-8d35-4250-81b3-9fdbe413ecd4%2Fez1la1_processed.png&w=3840&q=75)
Transcribed Image Text:$5000 at time 0 is equivalent to:
Select one:
a. $7800 at the end of year 7, i=8% simple interest rate
O b. $7346.64 at the end of year 5, i=8% compound interest rate
C.
$6800 at the end of year 6, i=6% simple interest rate
d. all the above
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