Thinking Mathematically (6th Edition)

Published by Pearson
ISBN 10: 0321867327
ISBN 13: 978-0-32186-732-2

Chapter 8 - Personal Finance - 8.4 Compound Interest - Exercise Set 8.4 - Page 523: 64

Answer

The statement does not make sense.

Work Step by Step

The statement does not make sense. It is quite possible that an account with a lower interest rate can be a better investment than an account with a higher interest rate. For example, if an account earns compound interest that is compounded continuously, then it could earn more interest than an account earning simple interest at a higher interest rate.
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