9p) Suppose you are given $1000 to invest. You have two options: a savings bond that offers 10% simple nterest, or a savings account that offers 6% annual interest, compounded monthly. a) If you were going to invest the money for 5 years, which is the better choice? How much interest does each option earn over 5 years? b) If you were going to invest the money for 10 years, which is the better choice? How much interest does each option earn over 10 years? (c) Which option do you expect to be the better investment in the long run? Explain your thinking.

9p) Suppose you are given $1000 to invest. You have two options: a savings bond that offers 10% simple nterest, or a savings account that offers 6% annual interest, compounded monthly. a) If you were going to invest the money for 5 years, which is the better choice? How much interest does each option earn over 5 years? b) If you were going to invest the money for 10 years, which is the better choice? How much interest does each option earn over 10 years? (c) Which option do you expect to be the better investment in the long run? Explain your thinking.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 3PB: Use the tables in Appendix B to answer the following questions. A. If you would like to accumulate...

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