Question: Local banks are all offering 6 compounded monthly on five

Local banks are all offering 6% compounded monthly on five year Certificates of Deposit. Hanover Bank has offered continuous compounding at the same rate on new CDs hoping to attract additional customers. Sharon Shaker has just received a $50,000 royalty check for a romance novel she wrote last year. She has no immediate need for the money and intends to deposit it for about 5 years at the best interest rate she can get. How much more interest will her deposit earn at Hanover than at another bank?

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  • CreatedMay 14, 2015
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