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John is interested in investing $30,000 in a bond. He is looking at two different options, Amazon's bond offers a stated rate of interest of
John is interested in investing $30,000 in a bond. He is looking at two different options, Amazon's bond offers a stated rate of interest of 7.6% compounded quarterly while Microsoft's bond offers a stated rate of interest of 7.2% compounded monthly. John knows he must take compounding into consideration for the true interest rate. What would be the difference in interest earned between the two bonds where both have a 5-year term?
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