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Robert and Rosie both invested $7,500 5 years ago. They both earned a 15% return, however Robert earned a simple return of 15% and Rosie
Robert and Rosie both invested $7,500 5 years ago. They both earned a 15% return, however Robert earned a simple return of 15% and Rosie earned a compounded return of 15%. How did this difference in compounding affect their investments value today?
Robert will have $1,960 more than Rosie |
Rosie will have $1,960 more than Robert |
Robert will have $2,250 more than Rosie |
Rosie will have $2,250 more than Robert |
Their investments will be worth the same |
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