Question
A bank investment of $100 is made by Alpha which provides an annual return of 8% (simple interest) and principle plus interest is left in
A bank investment of $100 is made by Alpha which provides an annual return of 8% (simple interest) and principle plus interest is left in the bank for 5 years to accumulate. Beta also invests $100 at this bank for a term of 5 years and earns compound interest compounded annually. At the end of 5 years when the investments are cashed in:
Alpha receives more
They receive identical amounts
Beta receives more
Alpha receives $164
There is not enough information provided to solve this problem.
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Income Tax Fundamentals 2013
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
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1111972516, 978-1285586618, 1285586611, 978-1285613109, 978-1111972516
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