Quiz Ch 05 – Comparing Interest Earnings of Two Depositors
Fundamentals of Corporate Finance
Ross, Westerfield, and Jordan
13th Edition
Clayton deposited $2,500 into an account that pays 5 percent interest, compounded annually, and plans to withdraw his interest earnings immediately. Jayda deposited $2,500 at 5 percent interest, compounded annually, and will reinvest her interest earnings. Who will earn more interest in Year 1?