You are saving to buy a ($100,000) house. There are two competing banks in your area, both

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You are saving to buy a \($100,000\) house. There are two competing banks in your area, both offering certificates of deposit yielding 5 percent. How long will it take your initial \($75,000\) investment to reach the desired level at First Bank, which pays simple interest? How long at Second Bank, which compounds interest monthly?

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Fundamentals Of Corporate Finance

ISBN: 9780072313000

5th Edition

Authors: Stephen A Ross, Randolph W Westerfield

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