a) Let's say you invest $10,000 into each account. What is the final amount after 10 years? b) How much interest did you earn from each account? c) Estimate and compare how long it would take to double your $10,000 with each account. Show all your work.

a) Let's say you invest $10,000 into each account. What is the final amount after 10 years? b) How much interest did you earn from each account? c) Estimate and compare how long it would take to double your $10,000 with each account. Show all your work.

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Question

Details
Account A
Account B
Bank Name
TD Bank
Scotiabank
TD ePremium Savings
Account
MomentumPLUS Savings
Account
Account Name
Annual Interest Rate
0.500%
1.350%
Compounding Interval
Daily
Daily
2.
Use this information to answer the following questions:
a) Let's say you invest $10,000 into each account. What is the final amount after
10 years?
b) How much interest did you earn from each account?
c) Estimate and compare how long it would take to double your $10,000 with
each account. Show all your work.
d) Using the information you collected, would you use either of these savings
accounts long-term? Explain.
e) Write a function for each bank model and compare their 'a' value, base, and
exponent. Does your comparison still support your decision? Explain.

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