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You have a $1000 in your pocket, compensation money for having to take BUQU 1130 with an irritating prof. You decide you had better put the money in the bank. You walk past two banks. One is advertising 7% compounded monthly. The other 8% compounded annually. Of course you want the one giving the most interest. After one year, what is the DIFFERENCE in interest earned between the two? Two decimal places, no $.

You have a $1000 in your pocket, compensation money for having to take BUQU 1130 with an irritating prof. You decide you had better put the money in the bank. You walk past two banks. One is advertising 7% compounded monthly. The other 8% compounded annually. Of course you want the one giving the most interest. After one year, what is the DIFFERENCE in interest earned between the two? Two decimal places, no $.

Essentials Of Investments
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
Problem 1PS
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You have a $1000 in your pocket, compensation money for having to take BUQU 1130 with an irritating prof. You decide you had better put the money in the bank. You walk past two banks. One is advertising 7% compounded monthly. The other 8% compounded annually. Of course you want the one giving the most interest. After one year, what is the DIFFERENCE in interest earned between the two? Two decimal places, no $.
Transcribed Image Text:You have a $1000 in your pocket, compensation money for having to take BUQU 1130 with an irritating prof. You decide you had better put the money in the bank. You walk past two banks. One is advertising 7% compounded monthly. The other 8% compounded annually. Of course you want the one giving the most interest. After one year, what is the DIFFERENCE in interest earned between the two? Two decimal places, no $.
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