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Bank C Promises to Pay a Compound Annual Interest Rate

Question 13

Multiple Choice

Bank C promises to pay a compound annual interest rate of 6%,while Bank S pays an 8% simple annual interest rate,on deposits.If you deposit $1,000 in each bank,and do not make any withdrawals,after 10 years your deposit in Bank C equals _________,while your deposit in Bank S equals __________.


A) $1,060;$1,800
B) $1,600;$1,800
C) $1,600;$2,159
D) $1,791;$1,800
E) $1,791;$2,159

Correct Answer:

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