If you have a choice to earn simple interest on $10,000 for 3 years at 8 or annually compounded interest at 7 5 for three years, which one will pay more and by how much Simple interest by $50 Simple interest by $50 Compound interest by $150 75 Compound interest by $150 00 None of the above

The Answer is in the image, click to view ...

Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Jun 08, 2024

If you have a choice to earn simple interest on $10,000 for 3 years at 8% or annually compounded interest at 7.5% for three years,

If you have a choice to earn simple interest on $10,000 for 3 years at 8% or annually compounded interest at 7.5% for three years, which one will pay more and by how much?

	Simple interest by $50
	Simple interest by $50

	Compound interest by $150.75
	Compound interest by $150.00

None of the above

Step by Step Solution

There are 3 Steps involved in it

Step: 1

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

Step: 3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

International Financial Reporting A Practical Guide

Authors: Alan Melville

6th edition

1292200743, 1292200766, 9781292200767, 978-1292200743

More Books

Students also viewed these Finance questions

Question

★★★★★

Joanna takes a security interest in the equipment in Jason Store and files a financing statement claiming equipment and all after acquired equipment. Berkeley later sells Jason Store a cash register...

Answered: 1 week ago

Question

★★★★★

How important do you consider the 'mega-summitry' hosted by the United Nations, such as the Earth Summit in 1992 and the Rio+20 conference in 2012, has been in changing patterns of development...

Answered: 1 week ago

Question

★★★★★

What does modern portfolio theory (i.e., traditional finance) say about how an investor should form an optimal stock portfolio?

Answered: 1 week ago

Question

★★★★★

Hotel XYZ is an independent city centre hotel property with 200 rooms. In general its Average Daily rate is approximately 100 throughout the year, and its runs at an average of 65% occupancy. Its...

Answered: 1 week ago

Question

★★★★★

Bedford Communications reported the following figures in its annual financial statements: ( Click the icon to view the figures. ) Compute the rate of inventory turnover and days' sales in inventory...

Answered: 1 week ago

Question

★★★★★

1. The ten-year Floating-rate note (FRN) has coupons referenced to 3-month pound LIBOR, and pays coupon interest quarterly. Assume that the current 3-month LIBOR is 3 percent. If the risk premium...

Answered: 1 week ago

Question

★★★★★

Case 1: Effect of transactions on accounting equation. On August 1 Joseph set up Exacta Reprographic Company. The following transactions took place during the first month: a) Joseph deposited 70,000...

Answered: 1 week ago

Question

★★★★★

What would be an appropriate way for an organization to address at least one point of focus from the principle "deploys through policies and procedures"? Specifying relevant objectives Configuring...

Answered: 1 week ago

Question

★★★★★

Explain how you would measure performance of the general ledger and financial reporting cycle at AB HI-Fi, specifically: (a) What metrics would you would use to measure performance? (b) For each...

Answered: 1 week ago

Question

★★★★★

During process 1.0 Prepare budgets at AB Hi-Fi a budget clerk has to decide whether an adjusted budget submitted by a manager looks reasonable. Take a moment to review this section of the narrative...

Answered: 1 week ago

Question

★★★★★

(a) AB Hi-Fi has adopted a cost leadership strategy. Its overall plan is to undercut competitors on pricing and so gain market share. How well does its current prepare budgets process align with this...

Answered: 1 week ago

Previous Question Next Question