Jace is trying to determine how to invest $1,234.56 that he inherited from his cousin Elijah. He has the following options at his bank. Certificate of Deposit that pays 4.25% simple interest. Savings Account that pays 3.95% compounded annually. How much will the CD be worth if he left the money untouched for 30 years? A) $2,808.66 B) $5,246.88 C) $4,303.23 D) $28,086.60
Jace is trying to determine how to invest $1,234.56 that he inherited from his cousin Elijah. He has the following options at his bank. Certificate of Deposit that pays 4.25% simple interest. Savings Account that pays 3.95% compounded annually. How much will the CD be worth if he left the money untouched for 30 years? A) $2,808.66 B) $5,246.88 C) $4,303.23 D) $28,086.60
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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Jace is trying to determine how to invest $1,234.56 that he inherited from his cousin Elijah. He has the following options at his bank.
Certificate of Deposit that pays 4.25% simple interest.
Savings Account that pays 3.95% compounded annually.
How much will the CD be worth if he left the money untouched for 30 years?
A) $2,808.66
B) $5,246.88
C) $4,303.23
D) $28,086.60
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