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Chauncey makes an investment of $1,000 that will earn interest at an effective annual rate of 5% for 5 years. Abigail makes an investment of
Chauncey makes an investment of $1,000 that will earn interest at an effective annual rate of 5% for 5 years. Abigail makes an investment of $1,000 that will earn effective annual rates of 3%, 4%, 5%, 6%, and 7% in years 1, 2, 3, 4, and 5, respectively. Abigail boasts to Chauncey, "My investment is better than yours. I will have more than you 5 years from now." Is Abigail right?
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