Question
First City Bank pays 8 percent simple interest on its savings account balance whereas Second City Bank pays 8 percent interest compounded annually. If you
First City Bank pays 8 percent simple interest on its savings account balance whereas Second City Bank pays 8 percent interest compounded annually. If you make a deposit of $14500 in each bank, how much more money would you earn in Second Bank account at the end of 9 years?
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Inside And Outside Liquidity
Authors: Bengt Holmstroem, Jean Tirole
1st Edition
0262518538, 9780262518536
