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Amanda deposits $90,000 into an account that pays 6% Interest per year, compounded annually. Sam deposits $90,000 into an account that also pays 6% per
Amanda deposits $90,000 into an account that pays 6% Interest per year, compounded annually. Sam deposits $90,000 into an account that also pays 6% per year. But it is simple interest. Find the interest Amanda and Sam earn during each of the first three years. Then decide who earns more interest for each year. Assume there are no withdrawals and no additional deposits. Year First Second Third Interest Amanda earns (Interest compounded annually) $ $7 $ Interest Sam earns (Simple interest) $ $ $ Who earns more interest? Amanda earns more. Sam earns more. They earn the same amount. Amanda earns more. Sam earns more. They earn the same amount. Amanda earns more. Sam earns more. They earn the same amount.
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Fundamentals of Investments Valuation and Management
Authors: Bradford D. Jordan, Thomas W. Miller
5th edition
978-007728329, 9780073382357, 0077283295, 73382353, 978-0077283292
