Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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Question
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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