Question
Cole and Anthony are both investing $1000. Cole invests his $1000 in an account compounding monthly with an APR of r. Anthony splits his investment
Cole and Anthony are both investing $1000. Cole invests his $1000 in an account compounding monthly with an APR of r. Anthony splits his investment into two accounts. Both accounts compound monthly at an APR of r (the same rate as Cole) but with $700 in the first account, and $300 in the second. . Compare the value of these accounts after N years. Be sure to clearly explain your reasoning.
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Fundamentals Of Corporate Finance
Authors: Jonathan Berk, Peter DeMarzo, Jarrad Harford
5th Edition
0135811600, 978-0135811603
