Jeremy desperately needs $80,000 to buy an engagement ring so that he can propose to his girlfriend. However, he "only" has $50 000 right now. Which of the following options offered by his bank will allow him to accomplish his goal faster? Option 1: Option 2: 6.25% compounded annually with a 2% penalty of the initial principle if it is withdrawn before 10 years. 6% compounded semi-annually with no penalty.

Jeremy desperately needs $80,000 to buy an engagement ring so that he can propose to his girlfriend. However, he "only" has $50 000 right now. Which of the following options offered by his bank will allow him to accomplish his goal faster? Option 1: Option 2: 6.25% compounded annually with a 2% penalty of the initial principle if it is withdrawn before 10 years. 6% compounded semi-annually with no penalty.

Algebra and Trigonometry (6th Edition)

6th Edition

ISBN:9780134463216

Author:Robert F. Blitzer

Publisher:Robert F. Blitzer

ChapterP: Prerequisites: Fundamental Concepts Of Algebra

Section: Chapter Questions

Problem 1MCCP: In Exercises 1-25, simplify the given expression or perform the indicated operation (and simplify,...

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Jeremy desperately needs $80,000 to buy an engagement ring so that he can
propose to his girlfriend. However, he "only" has $50 000 right now. Which of
the following options offered by his bank will allow him to accomplish his goal
faster?
Option 1: 6.25% compounded annually with a 2% penalty of the initial
principle if it is withdrawn before 10 years.
6% compounded semi-annually with no penalty.
Option 2:

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Jeremy decided that any girlfriend that required such an expensive wedding ring
wasn't worth the trouble. He decides to investment to save money for a house
down payment. How long does it take to double his money with each option?

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