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a. You deposit $1,200 in your bank account. If the bank pays 5% simple interest, how much will you accumulate in your account after 8
a. | You deposit $1,200 in your bank account. If the bank pays 5% simple interest, how much will you accumulate in your account after 8 years? |
Future value | $ |
b. | What if the bank pays compound interest (annually)? (Do not round intermediate calculations. Round your answer to 2 decimal places.) |
Compound interest | $ |
c. | How much of your earnings will be interest on interest? (Round your answer to 2 decimal places.) |
Interest on interest | $ |
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