Business, 02.03.2020 20:56 delaneynagle3368
First Simple Bank pays 9.4 percent simple interest on its investment accounts. First Complex Bank pays interest on its accounts compounded annually. What rate should First Complex Bank set if it wants to match First Simple Bank over an investment horizon of 14 years?
Answers: 2
![I_C = (1+r)^{14}-1=I_S\\(1+r)^{14}-1=1.316\\r=\sqrt[14]{2.316}-1\\ r=0.06182 = 6.182\%](/tpl/images/0530/6150/030a5.png)
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