Four years ago, XZY deposited $2,920 in an account that has earned and will earn 8.70 percent per year in compound interest. If ABC deposits $3,540 in an account in 1 year from today that earns simple interest, then how much simple interest per year must ABC earn to have the same amount of money in 10 years from today as XZY will have in 10 years from today? Answer as an annual rate. 20.30% (plus or minus .05 percentage points) 10.00% (plus or minus .05 percentage points) 9.00% (plus or minus .05 percentage points) 18.36% (plus or minus .05 percentage points) None of the above is within .05 percentage points of the correct answer.

Four years ago, XZY deposited $2,920 in an account that has earned and will earn 8.70 percent per year in compound interest. If ABC deposits $3,540 in an account in 1 year from today that earns simple interest, then how much simple interest per year must ABC earn to have the same amount of money in 10 years from today as XZY will have in 10 years from today? Answer as an annual rate. 20.30% (plus or minus .05 percentage points) 10.00% (plus or minus .05 percentage points) 9.00% (plus or minus .05 percentage points) 18.36% (plus or minus .05 percentage points) None of the above is within .05 percentage points of the correct answer.

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

ChapterA: Appendix - Time Value Of Cash Flows: Compound Interest Concepts And Applications

Section: Chapter Questions

Problem 15E

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