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Compounding factors versus simple interest

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Reference no: EM131559831

There are many factors influencing the cost of money for both individuals and corporations. Suppose you deposit money in an interest bearing account and at the same time borrow a bit of money from the same bank.

  • In which account would the bank apply quarterly compounding factors versus simple interest?
  • Explain your choices and your reasoning. You may want to check your personal accounts in regard to this type of transaction.

In a hundred and fifty word or more paragraph.

Reference no: EM131559831

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