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5) An investor wants to invests $5000 into a mutual fund for 10 years. She has two options; she can earn 5% simple interest annually
5) An investor wants to invests $5000 into a mutual fund for 10 years. She has two options; she can earn 5% simple interest annually (f(x) = 5000(1.05t) ), or 3% compound interest compounded annually (g(x) = 5000(1.03)t
Which would earn her the most money?
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