SOLUTION: Nangula wishes to invest 5000 pounds for 10 years. three banks offer different terms for the investment. Bank A pays simple interest of 6% per annum. Bank B pays interest of 5% com
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Question 478765: Nangula wishes to invest 5000 pounds for 10 years. three banks offer different terms for the investment. Bank A pays simple interest of 6% per annum. Bank B pays interest of 5% compounded per annum. Bank C pays compound interest of 4%, but paid on a 6 monthly basis. Calculate how much the investment will be worth for each bank at the end of 10 years. Answer by rfer(16322) (Show Source):
You can put this solution on YOUR website! Bank A
I=prt
I=5000*0.06*10
I=3000
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5000+3000=8000
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Bank B
A=5000(1.05)^10
A=5000*1.628895
A=8144.48
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Bank C
A=5000(1+0.04/2)^(10*2)
A=5000(1.02)^20
A=5000*1.48595
A=7429.75
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