Problema Solution

Bank A pays 8% interest compounded querterly; bank B pays 10% compounded semi annually. If $1000 were deposited in each bank, how much money would there be at the end of 5 years in

a. the bank A account

b. the bank B account

c. in which bank would you deposit your money?

Answer provided by our tutors

Bank A pays 8% interest compounded querterly; bank B pays 10% compounded semi annually. If $1000 were deposited in each bank, how much money would there be at the end of 5 years in

a. the bank A account= 1485.95

b. the bank B account= 1628.89

c. in which bank would you deposit your money? bank b