Concept explainers
Book value. Refer back to our analysis of the expected value of reading this book (pages 766–767). Suppose you took the $130 and put it in a bank account guaranteed to pay 10% interest compounded annually for 40 years. Which is the better investment: depositing the money in a bank or buying and reading this book? (Hint: You can use the formula
You may need a calculator.)
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The Heart of Mathematics: An Invitation to Effective Thinking
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