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Bank A is offering to pay compound interest of 8% per year on new savings accounts. Bank B is offering 8.5% per year simple interest
Bank A is offering to pay compound interest of 8% per year on new savings accounts. Bank B is offering 8.5% per year simple interest on a 4-year certificate of deposit. Which offer is more attractive to a company that wants to set aside $1,500,000 now for a plant expansion 4 years from now?
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