Suppose you won P10,000 and you plan to invest it for 5 years. A cooperative group...
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"Suppose you won P10,000 and you plan to invest it for 5 years. A cooperative group offers 2% simple interest rate per year. A bank offers 2% compounded annually. Which will you choose and why?" Illustrate/explain your answer by comparing simple interest vs compound interest. (Show your solution and answer 'Which will you choose between the two and why?') "Suppose you won P10,000 and you plan to invest it for 5 years. A cooperative group offers 2% simple interest rate per year. A bank offers 2% compounded annually. Which will you choose and why?" Illustrate/explain your answer by comparing simple interest vs compound interest. (Show your solution and answer 'Which will you choose between the two and why?')
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For simple interest the interest is calculated only on the initial princ... View the full answer
Related Book For
Microeconomics An Intuitive Approach with Calculus
ISBN: 978-0538453257
1st edition
Authors: Thomas Nechyba
Posted Date:
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