You can invest in an account that pays simple interest or an account that pays compound interest. In either case, you plan to invest $3,700 today and both accounts have an annual interest rate of 7 percent. How much more interest will you receive in the 9th year in the account that pays compound interest? Multiple Choice $198.86 $199.68 $186.01 $203.17 $259.00
You can invest in an account that pays simple interest or an account that pays compound interest. In either case, you plan to invest $3,700 today and both accounts have an annual interest rate of 7 percent. How much more interest will you receive in the 9th year in the account that pays compound interest? Multiple Choice $198.86 $199.68 $186.01 $203.17 $259.00
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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You can invest in an account that pays simple interest or an account that pays compound interest. In either case, you plan to invest $3,700 today and both accounts have an annual interest rate of 7 percent. How much more interest will you receive in the 9th year in the account that pays compound interest?
Multiple Choice
$198.86
$199.68
$186.01
$203.17
$259.00
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