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Suppose someone plans to invest $ 1 , 0 0 0 . They can earn an annual interest rate of 5 % on Security A

Suppose someone plans to invest $

1, 000 .

They can earn an annual interest rate of

5 %

on Security A

,

while Security B has an annual interest rate of

12 % .

After

11

years, the future value of Security B will be more than twice the future value of Security A

.

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