Kristina decided she would do better if she put her money in the bank for one year, which paid 3.25% interest compounded annually. The interest is calculated termly. Was she right that this invest will give her more money after 5 years?
Added by Eddie B.
Step 1
It means that the interest is added to the principal at the end of each year, and then the interest for the next year is calculated on this new total. Now, let's assume Kristina has $1000 to invest. After the first year, she would have $1000 + ($1000 * Show more…
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