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Question - Topic - Time Value of Money
Q1) Suppose you invest P 794,515 in a fund earning 9 % simple interest annually. After 3 years, you have the option of moving your money to an account that pays at an annual effective rate of 7 % compound interest. If you wish to withdraw in 9 more years, determine the net benefits of moving your money to the compound interest account.
Q2) Suppose you invested P 790,010 in a fund earning 10 % simple interest annually. After 2 years, you have the option of moving your money to an account that pays at an annual effective rate of 8 % compound interest. If you wish to withdraw in 10 more years, determine the net benefits of staying your money in the simple interest account.
incremental analysisresearch topicthe topic is a broad subject. the topic is not the problem to be solved that comes
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