John and Mary, both Finance students at The University of the West Indies, want to make an investment of USD$12,500 each. At First Bank, John invested USD$12,500.00 at an annual rate of 12% for 3 years while Mary invested the same amount at GCU Credit Union for 10% per annum compounded annually. Who earns more interest and by how much? 2. Which option would you choose and why?
John and Mary, both Finance students at The University of the West Indies, want to make an investment of USD$12,500 each. At First Bank, John invested USD$12,500.00 at an annual rate of 12% for 3 years while Mary invested the same amount at GCU Credit Union for 10% per annum compounded annually. Who earns more interest and by how much? 2. Which option would you choose and why?
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
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John and Mary, both Finance students at The University of the West Indies, want to make an investment of USD$12,500 each. At First Bank, John invested USD$12,500.00 at an annual rate of 12% for 3 years while Mary invested the same amount at GCU Credit Union for 10% per annum compounded annually.
- Who earns more interest and by how much?
2. Which option would you choose and why?
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