George Green wishes to invest $8000,00 that he saved from his summer job. His bank offers 3.75% for a one-year term or 3.5% for a six month term.

(a) How much will George receive (capital plus interest) after one year if he invests at the one-year rate? Round to nearest one.

(b) How much will he receive (capital plus interest) after one-year if he invests for six months at a time at 3.5% each time? Round to nearest 100th.

(c) What would the one-year rate have to be to yield the same amount of interest when investing for six months at a time at 3.5% each time? Give your answer as a percentage round to nearest 100th.

Answer rating: 100% (QA)

Current investment 8000 Interest r One year term 375 Six month term 350 3502 1... View the full answer