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14 February, 00:34

You are saving to buy a $188,000 house. There are two competing banks in your area, both offering certificates of deposit yielding 7.3 percent. How long will it take your initial $105,000 investment to reach the desired level at First Bank, which pays simple interest? (Do not round intermediate calculations and round your answer to 2 decimal places, e. g., 32.16.)

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  1. 14 February, 00:39
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    n = 24.53

    Explanation:

    Simple interest investment; A = P * N*I

    ; $188,000 = $105,000*0.073*n

    ; $188000 = 7665n

    ; $188000/$7665 = n

    ; n = 24.53
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