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NEW QUESTION: 1
You have invested in a long-term, fixed deposit account earning 4% per year for 20 years, compounded annually. Your friend has invested in a similar account but one that earns 4.25% per year, compounded semi-annually. If each of you deposited $5,000, by what amount is your friend wealthier than you due to this deposit?
A. $601
B. $521
C. $639
D. $538
Answer: C
Explanation:
Explanation/Reference:
Explanation:
The friend's account has 5,000*(1+0425/2)
