Question
Simple Bank pays an interest rate of 10% per year, but only pays simple interest. Compound Bank pays compound interest and has an annual interest
Simple Bank pays an interest rate of 10% per year, but only pays simple interest. Compound Bank pays compound interest and has an annual interest rate of 9%. If you deposit $100 in an account at each bank, how long do you have to wait until the value of your Compound Bank account is greater than the value of your Simple Bank account?
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Financial Management Principles and Applications
Authors: Sheridan Titman, Arthur J. Keown, John H. Martin
13th edition
134417216, 978-0134417509, 013441750X, 978-0134417219
