question archive Pre-Class Assignment 4A/4B - Week 81) Explain the difference between simple interest and compound interest
Pre-Class Assignment 4A/4B - Week 81) Explain the difference between simple interest and compound interest
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Pre-Class Assignment 4A/4B - Week 81) Explain the difference between simple interest and compound interest.
Read through section 4B in your book and answer the following questions.
What are their respective formulas?
Which would you prefer your bank to offer for your investments and why?
2) Suppose you have $1,000 to invest. You can either invest in a cd that yields an 8% simple interest, or in a cd that yields a 6% interest is compounded quarterly. Which investment will yield a greater return at the end of one year? Show work to prove your answer.
