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Withdraw assuming the investment earns simple interest

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Reference no: EM131134086

BEA-1 Don Smith invested $5,000 at 6% annual interest, and left the money invested without withdrawing any of the interest for 10 years. At the end of the 10 years, Don withdrew the accumulated amount of money.

(a) What amount did Don withdraw assuming the investment earns simple interest?

(b) What amount did Don withdraw assuming the investment earns interest compounded annually?

Reference no: EM131134086

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