Sara has $4,000 that she can invest in any of three savings accounts for a 6-year period. Bank (A) compounds interest on an annual basis, bank (B) compounds interest each semiannual, and bank (C) compounds interest each quarter. All three banks have a stated annual interest rate of 8%.

What amount would Ms. Sara has at the end of the 6-year, leaving all interest paid on deposit, in bank (C)? 

B. What effective annual rate would he earn in bank (B)

Answer rating: 100% (QA)

To calculate the amount Sara would have at the end of 6 years in bank C we can use the formula for c... View the full answer