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FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Question

Transcribed Image Text:You are saving to buy a $179,000 house. There are two
banks in your area, both offering
deposit yielding 6.4
competing
certificates of
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)).
Expert Solution
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