You are saving to buy a $179,000 house. There are two banks in your area, both offering competing certificates of deposit yielding 6.4 percent. Requirement 1: How long will it take your initial $96,000 investment to reach the desired level at First Bank, which pays simple interest? (Enter rounded answer as directed, but do not use rounded numbers in intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16)). Requirement 2: How long will it take your initial $96,000 investment to reach the desired level at Second Bank, which compounds interest monthly? (Enter rounded answer as directed, but do not use rounded numbers in intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16)).
You are saving to buy a $179,000 house. There are two banks in your area, both offering competing certificates of deposit yielding 6.4 percent. Requirement 1: How long will it take your initial $96,000 investment to reach the desired level at First Bank, which pays simple interest? (Enter rounded answer as directed, but do not use rounded numbers in intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16)). Requirement 2: How long will it take your initial $96,000 investment to reach the desired level at Second Bank, which compounds interest monthly? (Enter rounded answer as directed, but do not use rounded numbers in intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16)).
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:You are saving to buy a $179,000 house. There are two
banks in your area, both offering
competing
certificates
of
deposit yielding 6.4
percent.
Requirement 1: How long will it take your initial
$96,000 investment to reach the desired level at First
Bank, which pays simple interest? (Enter rounded
answer as directed, but do not use rounded numbers
in intermediate calculations. Round your answer to 2
decimal places (e.g., 32.16)). Requirement 2: How long
will it take your initial $96,000 investment to reach the
desired level at Second Bank, which compounds
interest monthly? (Enter rounded answer as directed,
but do not use rounded numbers in intermediate
calculations. Round your answer to 2 decimal places
(e.g., 32.16)).
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