Question
You are saving to buy a $175,000 house. There are two competing banks in your area, both offering certificates of deposit yielding 6 percent. Requirement
| You are saving to buy a $175,000 house. There are two competing banks in your area, both offering certificates of deposit yielding 6 percent. |
| Requirement 1: |
| How long will it take your initial $92,000 investment to reach the desired level at First Bank, which pays simple interest? (Enter rounded answer as directed, but do not use the rounded numbers in intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).) |
| Number of years |
| Requirement 2: |
| How long will it take your initial $92,000 investment to reach the desired level at Second Bank, which compounds interest monthly? (Enter rounded answer as directed, but do not use the rounded numbers in intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).) |
| Number of years |
|
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Financial Modeling An Introductory Guide To Excel And VBA Applications In Finance
Authors: Joachim Häcker, Dietmar Ernst
1st Edition
1137426578, 978-1137426574
