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Jarom and Christina are twins. Both Jarom and Christina invest $5,000 each year beginning when they are 30 years old. Jarom's investment pays 7 percent
Jarom and Christina are twins. Both Jarom and Christina invest $5,000 each year beginning when they are 30 years old. Jarom's investment pays 7 percent annually with semi-annual compounding, while Christina's pays 7 percent annually with monthly compounding. Both Jarom and Christina retire at age 70. Which one of the following statements is correct? |
Christina will have the same amount as Jarom when they retire. |
Jarom will earn more in interest than Christina. |
Christina will have more than Jarom when they retire. |
Christina and Jarom earn the same amount of interest each year. |
Christina will have less than Jarom when they retire. |
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