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One year ago, XZY deposited $670 in an account that has earned and will earn 5.40 percent per year in compound interest. If CAB deposits
One year ago, XZY deposited $670 in an account that has earned and will earn 5.40 percent per year in compound interest. If CAB deposits $750 in an account in 2 years from today that earns simple interest, then how much simple interest per year must CAB earn to have the same amount of money in 10 years from today as XZY will have in 10 years from today? Answer as an annual rate.
6.39% (plus or minus .05 percentage points) | ||
8.75% (plus or minus .05 percentage points) | ||
5.12% (plus or minus .05 percentage points) | ||
7.41% (plus or minus .05 percentage points) | ||
None of the above is within .05 percentage points of the correct answer |
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