Solution-What percentage rate do we need if interest

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Suppose we start with 7,000 dollars, and want to have 8,000 dollars available in 10 years.

A. What percentage rate do we need if interest is computed as simple interest?

Give your answer as a percent, with two decimal digits of precision.

B. What percentage rate do we need if interest is compounded annually?

Give your answer as a percent, with two decimal digits of precision.

Percent

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