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?

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

ChapterA3: Time Value Of Money

Section: Chapter Questions

Problem 5CE

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