Asked by neha

X must borrow $2000 for 2 years. He is offered the money at:(A) 5% compounded quarterly
(B) %
8
3
5 compounded annually
(C) %
2
1
5 simple interest
Which offer should he accept?

Answers

Answered by oobleck
compound: P(1 + r/n)^(n*t)
simple: A = P(1 + rt)
so plug in your numbers and compare.
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