Two banks pay simple interest on short-term deposits. Bank A pays 5%p.a. over 3 years, and Bank B pays 5.5% p.a. for 2 12 years. The differencebetween the two banks' final pay out figure, if $10 000 was invested ineach account is:O a. Balloon PaymentO b. Face ValueOC. Maturity ValueO d. Purchase Price

Simple interest is quite simple and only there is interest on the pricipal amount and there is no…

Answered: Two banks pay simple interest on…

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter16: Working Capital Policy And Short-term Financing

Section: Chapter Questions

Problem 14P

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