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The benefit of a higher apy

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The Benefit of a Higher APY.

Isabel Lopez, from Lewiston, Idaho, is age 19, and she recently received an inheritance of $50,000 from her grandmother's estate. She plans to use the money for the down payment on a home in ten years when she finishes her education.

Right now the funds are in a savings account paying 1% interest. How much would Isabel have in ten years if instead she purchased a ten-year CD paying 3%?

Reference no: EM132648515

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