Three years ago, ZYX deposited $2,590 in an account that has earned and will earn 8.60 percent per year in compound interest. If CAB deposits $3,690 in an account in 2 years from today that earns simple interest, then how much simple interest per year must CAB earn to have the same amount of money in 6 years from today as ZYX will have in 6 years from today? Answer as an annual rate. 19.32% (plus or minus .05 percentage points) 11.87% (plus or minus .05 percentage points) 3.79% (plus or minus .05 percentage points) 2.52% (plus or minus .05 percentage points) None of the above is within .05 percentage points of the correct answer

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
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Three years ago, ZYX deposited $2,590 in an account
that has earned and will earn 8.60 percent per year in
compound interest. If CAB deposits $3,690 in an account
in 2 years from today that earns simple interest, then
how much simple interest per year must CAB earn to
have the same amount of money in 6 years from today
as ZYX will have in 6 years from today? Answer as an
annual rate.
19.32% (plus or minus .05 percentage points)
11.87% (plus or minus .05 percentage points)
3.79% (plus or minus .05 percentage points)
2.52% (plus or minus .05 percentage points)
None of the above is within .05 percentage points
of the correct answer
Transcribed Image Text:Three years ago, ZYX deposited $2,590 in an account that has earned and will earn 8.60 percent per year in compound interest. If CAB deposits $3,690 in an account in 2 years from today that earns simple interest, then how much simple interest per year must CAB earn to have the same amount of money in 6 years from today as ZYX will have in 6 years from today? Answer as an annual rate. 19.32% (plus or minus .05 percentage points) 11.87% (plus or minus .05 percentage points) 3.79% (plus or minus .05 percentage points) 2.52% (plus or minus .05 percentage points) None of the above is within .05 percentage points of the correct answer
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