Question
$100 is invested for 10 years. During the first 4 yrs, the annual rate is 8%. During the last 6 yrs. the annual rate is
$100 is invested for 10 years. During the first 4 yrs, the annual rate is 8%. During the last 6 yrs. the annual rate is 2%.
1) How much is the simple interest during the first 4 yrs?
2) How much interest results from compounding during the first 4 yrs?
3) How much is the simple interest during the last 6 yrs?
4) How much is interest results from compounding during the last 6 yrs?
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Public Finance and Public Policy
Authors: Jonathan Gruber
4th edition
1429278455, 978-1429278454
