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Step 2 : Investing in a bank You are investing the remaining of your money in a bank with a percent rate of 2 .

Step 2: Investing in a bank
You are investing the remaining of your money in a bank with a percent rate of 2.25% over a period of
10 years. You are trying out two the options below:
What is the remainder of the money from $10,000?
Option A: Investing the money using simple interest
a) What is the interest amount?
b) What is the future balance (amount)?
Option B: Investing the money using compounded interest. What is the total amount when you invest
the money?
a) Annually?
b) Monthly?
c) Which parts a-b would you choose?
Which is a best option to invest the money (Option A or Option B)? Why?
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