Two banks are running promotions on savings accounts in anticipation of higher interest rates in the future. First National Bank

Question

Two banks are running promotions on savings accounts in anticipation of higher interest rates in the future.

First National Bank is offering 2.15% interest rates on their savings account, which compounds interest continuously.

First Federal Bank is offering 2.25% interest rates on their savings account, which compounds interest semi-annually.

If you are going to deposit $5000 for four years, which account should you choose? How much more will you earn from the higher-earning savings account?

in progress 0
Tryphena 4 years 2021-08-25T09:32:56+00:00 1 Answers 12 views 0

Answers ( )

  1. ngockhue
    0
    2021-08-25T09:33:58+00:00
    Reply

    Answer:

    First Federal Bank is best

    Step-by-step explanation:

    First national bank gives:

    $5,449.03 after 4 years being compounded annually at a rate of 2.15%

    First federal bank gives:

    $5,468.12 after 4 years at a rate of 2.25%

    Please let me know if I did anything wrong. I will immediately fix my mistakes 🙂

Leave an answer

Browse

Giải phương trình 1 ẩn: x + 2 - 2(x + 1) = -x . Hỏi x = ? ( )