January 13, 2002
Formula for Compound Interest: Your Turn! Which option gives you the best payout? Option A) Invest $1800 at 5.65% interest compounded daily for 5 years. Option B) Invest $1000 at 6% interest compounded semiannually for 20 years. Let’s suppose an account starts with $1.00 and pays 100 percent interest per year. ................
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