You need to borrow $1 000 for a period of 10 years. Bank A will lend you the money at 10% interest, compounded annually, whereas Bank B will lend you the money at 10% interest, compounded monthly. At the end of ten years, how much more interest will you owe if you borrow from Bank B instead of Bank A?
A) $74.59
B) $92.50
C) $113.30
D) $137.39
E) $148.12
Correct Answer:
Verified
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