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a. Bob invests $11,500 in a 4 year Certificate of Deposit (CD) at the bank with an interest rate of 5.5%. Using simple interest
a. Bob invests $11,500 in a 4 year Certificate of Deposit (CD) at the bank with an interest rate of 5.5%. Using simple interest with an annual period, what will the CD be worth at the maturity date? b. What will the same CD be worth, using COMPOUND interest, at maturity? How much more (or less) will be made using compound interest?
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a To calculate the value of the Certificate of Deposit CD at maturity using simple interest we can u...
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Fundamentals Of Corporate Finance
Authors: Jonathan Berk, Peter DeMarzo, Jarrad Harford
6th Edition
0137852584, 9780137852581
