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May 28, 2015

Homework Help: finance

Posted by Anonymous on Sunday, April 3, 2011 at 11:34am.

You invest $1,000 in a certificate of deposit that matures after 10 years and pays 5 percent interest, which is compounded annually until the certificate matures.
a) How much interest will the saver earn if the interest is left to accumulate?
b) How much interest will the saver earn if the interest is withdrawn each year?
c) Why are the answers to a and b different

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