Tuesday, 11 October 2011

Sam wants to invest $5,000 for 5 years. Which one of the following rates will provide him with the largest future value?

Sam wants to invest $5,000 for 5 years. Which one of the following rates will provide him with the largest future value?
a. 5% simple interest
b. 5% interest, compounded annually
c. 7% simple interest
d. 7% interest, compounded annually

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