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You take $2,000 to ABC Bank and deposit it in an account that pays 6% interest compounded annually. Use the formula to calculate what your
- You take $2,000 to ABC Bank and deposit it in an account that pays 6% interest compounded annually.
- Use the formula to calculate what your account balance would be at the end of 2 years.
- You find out that PQR Bank also pays 6% interest per year but compounded quarterly. So, you pull out your money from ABC Bank at the end of 1 year and put $2,000 in PQR Bank. Calculate how much money you will have in PQR bank at the end of 2 years.
- What is the difference between the interest earned at the 2 banks in 1 year?
- Use the formula to calculate what your account balance would be at the end of 2 years.
- You find out that PQR Bank also pays 6% interest per year but compounded quarterly. So, you pull out your money from ABC Bank at the end of 1 year and put $2,000 in PQR Bank. Calculate how much money you will have in PQR bank at the end of 2 years.
- What is the difference between the interest earned at the 2 banks in 1 year?
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Public Finance Theory And Practice
Authors: M. Marlow
1st Edition
0030969603, 978-0030969607
