Multiple Choice
Investment A pays 8% simple interest for 10 years. Investment B pays 7.75% compound interest for 10 years. Both require an initial $10,000 investment. The future value of A minus the future value of B is equal to ______________ (to the nearest penny) .
A) $2,500.00
B) -$2,500.00
C) $1,643.32
D) $3,094.67
E) -$3,094.67 [10000 + (800 10) ] - [10000 1.077510]
Correct Answer:
Verified
Correct Answer:
Verified
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