First Simple Bank pays 8.9 percent simple interest on its investment accounts. First Complex Bank pays interest on its accounts compounded annually. What rate should First Complex Bank set if it wants to match First Simple Bank over an investment horizon of 6 years? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Interest rate %

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Q. 6

First Simple Bank pays 8.9 percent simple interest on its investment accounts. First
Complex Bank pays interest on its accounts compounded annually.
What rate should First Complex Bank set if it wants to match First Simple Bank over an
investment horizon of 6 years? (Do not round intermediate calculations and enter your
answer as a percent rounded to 2 decimal places, e.g., 32.16.)
Interest rate
%
Transcribed Image Text:First Simple Bank pays 8.9 percent simple interest on its investment accounts. First Complex Bank pays interest on its accounts compounded annually. What rate should First Complex Bank set if it wants to match First Simple Bank over an investment horizon of 6 years? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Interest rate %
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