The local bank pays 4% interest on savingsdeposits. In a nearby town, the bank pays 1% perquarter. A man who has $3000 to depositwonders whether the higher interest paid in thenearby town justifies driving there.1. How much will the man receive after 2 years ifhe used the local bank? The answer is closest to:$3123$3246$3060$3186

The interest rate is the amount a lender charges a borrower and is a percentage of the principal the…

pays ngs deposits. In a nearby town, the bank pays 1% per quarter. A man who has $3000 to deposit vonders whether the higher interest paid in the earby town justifies driving there. -. How much will the man receive after 2 years if OUCed the l cal hapk2 Th loca

pays ngs deposits. In a nearby town, the bank pays 1% per quarter. A man who has $3000 to deposit vonders whether the higher interest paid in the earby town justifies driving there. -. How much will the man receive after 2 years if OUCed the l cal hapk2 Th loca

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

The local bank pays 4% interest on savings
deposits. In a nearby town, the bank pays 1% per
quarter. A man who has $3000 to deposit
wonders whether the higher interest paid in the
nearby town justifies driving there.
1. How much will the man receive after 2 years if
he used the local bank? The answer is closest to:
$3123
$3246
$3060
$3186

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