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Business, 01.03.2021 21:50 AmbitiousAndProud

You are saving to buy a $192,000 house. There are two competing banks in your area, both offering certificates of deposit yielding 7.7 percent. Required:

a. How long will it take your initial $109,000 investment to reach the desired level at First Bank, which pays simple interest?
b. How long will it take your initial $109,000 investment to reach the desired level at Second Bank, which compounds interest monthly?

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