Investment A pays 8 percent simple interest for 10 years. Investment B pays 7.75 percent compound interest for 10 years. Both require an initial $10,000 investment. The future value of A minus the future value of B is equal to ______________ (to the nearest penny).
A)-$3,094.67
B)$3,094.67
C)$1,643.32
D)$2,500.00
E)-$2,500.00

Question

Quizplus · Accepted Answer

The Answer of Investment A pays 8 percent simple interest for 10 years. Investment B pays 7.75 percent compound interest for 10 years. Both require an initial $10,000 investment. The future value of A minus the future value of B is equal to ______________ (to the nearest penny).
A)-$3,094.67
B)$3,094.67
C)$1,643.32
D)$2,500.00
E)-$2,500.00

Investment a Pays 8 Percent Simple Interest for 10 Years