*Exercise 2.3 at pg24: Say you barrowed $10,000 from a bank at 12% interest rate per year for a period of 10 years. How much will you have to pay back after 10 years, if a. The bank charged you simple interest? b. The bank charged you compound interest?
*Exercise 2.3 at pg24: Say you barrowed $10,000 from a bank at 12% interest rate per year for a period of 10 years. How much will you have to pay back after 10 years, if a. The bank charged you simple interest? b. The bank charged you compound interest?
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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![*Exercise 2.3 at pg24: Say you barrowed $10,000 from a bank at 12% interest rate per year for a
period of 10 years. How much will you have to pay back after 10 years, if
а.
The bank charged you simple interest?
b. The bank charged you compound interest?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F9a8b4dc3-01c8-4870-9801-638eebc08242%2F0245e7c6-0626-4528-a653-c4b54d1600e1%2F9xf841k_processed.png&w=3840&q=75)
Transcribed Image Text:*Exercise 2.3 at pg24: Say you barrowed $10,000 from a bank at 12% interest rate per year for a
period of 10 years. How much will you have to pay back after 10 years, if
а.
The bank charged you simple interest?
b. The bank charged you compound interest?
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