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Are you smarter than a Boy Scout?
To earn what's called the personal management badge, Scouts must know the difference between simple and compound interest and how mutual funds differ from CDs. Could you pass their test?
Score so far: 0 of 10 points
1. Suppose you have $100 to invest. A local bank is offering 10% simple interest on savings accounts while another bank in your town is offering 10% compound interest. How much will you have after 10 years if you earn compound interest?