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15-12-2022
Mathematics

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Fifty year old James Jones just got a new job earning $65,000 per year. He will save 10% of his income each year for his retirement at age 65. He must decide whether to invest his savings in Big Sky Bank which offers 20% compounded semi-annually or Valley Bank which offers 8% compounded quarterly. How much interest would Jones' savings earn if he chose Big Sky Bank?

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