Bank a Offers 12% Interest, Compounded Yearly, and Bank B

question 162

Short Answer

Bank A offers 12% interest, compounded yearly, and Bank B offers 11.1% interest, compounded continuously. Which bank should you choose if you have $1000 to invest for 10 years?

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Definitions:

Platinum Suite

A premium offering or tier of services, typically in software, hospitality, or events, characterized by exclusive features or luxury amenities.

Price Range

The spread between the highest and lowest prices at which a commodity or asset is traded over a specific period.

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