Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Suppose I deposit a lump sum of money into an account that pays 5% per annum after all taxes and fees. Suppose I leave it
- Suppose I deposit a lump sum of money into an account that pays 5% per annum after all taxes and fees. Suppose I leave it invested there for a very long time (e.g., 65 years or more). If I look at the final balance in the account after this long time period, which one of the following would make up the largest percentage of the final balance?
Options :
A.The principal.
B.The accumulated simple interest.
C.The accumulated compound interest.
D.The accumulated interest on the interest.
E.No, in fact, we cannot say which of the above would be largest. It would depend upon the particular numbers used.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started