Question
You are saving to buy a $177,000 house. There are two competing banks in your area, both offering certificates of deposit yielding 6.2 percent. Requirement
| You are saving to buy a $177,000 house. There are two competing banks in your area, both offering certificates of deposit yielding 6.2 percent. |
| Requirement 1: |
| How long will it take your initial $94,000 investment to reach the desired level at First Bank, which pays simple interest? |
| Requirement 2: |
| How long will it take your initial $94,000 investment to reach the desired level at Second Bank, which compounds interest monthly? |
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Entrepreneurial Finance
Authors: Gary E. Gibbons, Robert D. Hisrich, Carlos Marques DaSilva
1st Edition
1452274177, 978-1452274171
