Question

Which is a better investment 3% per year compounded monthly or 3.2% per year simple interest?

Given that (1+0.0025)12 =1.0304.​

Answer 1

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Given that (1+0.0025)12 =1.0304. Effective rate of interest (E) being less than 3.2%, the simple interest 3.2% per year is the better investment

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Answer 2

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Step-by-step explanation:

Given that (1+0.0025)12 =1.0304. Effective rate of interest (E) being less than 3.2%, the simple interest 3.2% per year is the better investment