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In: Accounting

Manraj and Lifei are both investing $1000. Manraj invests his $1000 in an account compounding monthly...

Manraj and Lifei are both investing $1000. Manraj invests his $1000 in an account compounding
monthly with an APR of r. Lifei splits his investment into two accounts. Both accounts compound
monthly at an APR of r (the same rate as Manraj), but with $700 in the first account, and $300
in the second. Compare the value of these accounts after N years. Be sure to clearly explain your
reasoning.

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Expert Solution

Manraj and Lifei are both investing $1000. Manraj invests his $1000 in an account compoundingmonthly with an APR of r. Lifei splits his investment into two accounts.

ekkarill92 answered 1 year ago
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