Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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The Continental Bank advertises capital savings at 7.9% compounded annually while TD Canada Trust offers
premium savings at 7.75% compounded monthly. Suppose you have $2500 to invest for two years.
(a) Which deposit will earn more interest?
(b) What is the difference in the amount of interest?
(a) The TD Canada Trust savings account will earn more interest.
(b) The difference is $
(Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as
needed.)
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Transcribed Image Text:The Continental Bank advertises capital savings at 7.9% compounded annually while TD Canada Trust offers premium savings at 7.75% compounded monthly. Suppose you have $2500 to invest for two years. (a) Which deposit will earn more interest? (b) What is the difference in the amount of interest? (a) The TD Canada Trust savings account will earn more interest. (b) The difference is $ (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.)
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