Two years ago, Donald invested $1,560.00. He has earned and will earn compound interest of 8.76 percent per year. If Virginia invests $1,640.00 in 1 year from today and earns simple interest, then how much simple interest per year must Virginia earn to have the same amount of money in 6 years from today as Donald will have in 6 years from today? Answer as an annual rate. O A rate equal to or greater than 38.20% but less than 58.20% OA rate less than 17.73% or a rate greater than 60.11% O A rate equal to or greater than 18.69% but less than 38.20% A rate equal to or greater than 17.73% but less than 18.69% O A rate equal to or greater than 58.20% but less than 60.11%

Two years ago, Donald invested $1,560.00. He has earned and will earn compound interest of 8.76 percent per year. If Virginia invests $1,640.00 in 1 year from today and earns simple interest, then how much simple interest per year must Virginia earn to have the same amount of money in 6 years from today as Donald will have in 6 years from today? Answer as an annual rate. O A rate equal to or greater than 38.20% but less than 58.20% OA rate less than 17.73% or a rate greater than 60.11% O A rate equal to or greater than 18.69% but less than 38.20% A rate equal to or greater than 17.73% but less than 18.69% O A rate equal to or greater than 58.20% but less than 60.11%

EBK CFIN

6th Edition

ISBN:9781337671743

Author:BESLEY

Publisher:BESLEY

Chapter4: Time Value Of Money

Section: Chapter Questions

Problem 18PROB

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