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Park H.

asked • 07/16/20

A bank offers two different retirement savings plans to its customers.

For the first offer, the bank will match every dollar deposited up to $450, at which point all funds in the account will collect 3% interest annually. The second offer has no price matching, but instead pays an interest rate of 7%. At what principal value are the two accounts an identical investment after one year?

A) $866.35

B) $2257.83

C) $4562.43

D) $11587.50

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