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    Simple Interest versus Compound Interest

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    Simple Interest versus Compound Interest. First Mark Bank pays 6 percent
    simple interest on its savings account balances, whereas First Mullineaux Bank pays
    6 percent interest compounded annually. If you made a $5,000 deposit in each bank, how much more money would you earn from your First Mullineaux Bank account at the end of 10 years?

    © BrainMass Inc. brainmass.com March 4, 2021, 6:17 pm ad1c9bdddf
    https://brainmass.com/business/interest-rates/simple-interest-versus-compound-interest-38626

    Solution Preview

    In simple interest the formula is SI=P*R*T=5000*0.06*10=3000. The interest earned under simple ...

    Solution Summary

    The solution explains how to calculate simple interest and compound interest

    $2.49

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