Question: Melvin Indecision has difficulty deciding whether to put his savings in Mystic Bank or Four Rivers Bank. Mystic offers 12% interest compounded semiannually. Four Rivers

Melvin Indecision has difficulty deciding whether to put his savings in Mystic Bank or Four Rivers Bank. Mystic offers 12% interest compounded semiannually. Four Rivers offers 8% interest compounded quarterly. Melvin has $10,300 to invest. He expects to withdraw the money at the end of 7 years. Calculate interest for each bank and identify which bank gives Melvin the better deal? (Use the Table provided.) (Do not round intermediate calculations. Round your answer to the nearest cent.) Interest Mystic $ Four Rivers $ Better deal

Future value interest factor of $1 per period at i% for n periods, FVIF(in 0% 1 | 1.0050 | 1.0100 | 1.0150 | 1.0200 | 1.0250 | 1.0300 | 1.0350 | 1.0400 | 1.0450 | 1.0500 | 1.0550 | 1.0600 | 1.0650 | 1.0700 2 1.0100 1.0201 1.0302 1.0404 1.0506 1.0609 1.0712 1.0816 1.0920 1.1025 1.1130 1.1236 1.1342 1.1449 3 1.0151 1.0303 1.0457 1.0612 1.0769 1.09271.1087 1.1249 1.1412 1.15761.1742 1.1910 1.20791.2250 4 1.0202 1.0406 1.0614 1.0824 1.1038 1.1255 1.1475 1.1699 1.1925 1.21551.2388 1.2625 1.28651.3108 5 1.0253 1.0510 1.0773 1.1041 1.1314 1.15931.1877 1.2167 12462 1.2763 1.3070 13382 1.3701 1.4026 6 1.0304 1.0615 1.0934 1.1262 1.15971.1941 1.2293 1.2653 1.3023 1.3401 1.3788 1.4185 1.4591 1.5007 7 1.0355 1.0721 1.1098 1.1487 1.1887 1.2299 1.2723 1.3159 13609 1.4071 1.4547 1.5036 1.5540 1.6058 8 1.0407 1.0829 1.1265 1,1717 1.2184 1.2668 1.3168 1.3686 1,4221 1.477515347 15938 1.65501.7182 937 1.1434 1.1951 12489 1.304813629 1.4233 1.4861 1.5513 1.61911.6895 1.7626 1.8385 10 | 1.0511 | 1.1046 | 1.1605 | 1.2190 | 1.2801 | 1.3439 | 1.4106 | 1.4802 | 1.5530 | 1.6289 | 1.7081 | 1.7908 | 1.8771 1.9672 11 1.0564 1.1157 1.1779 1.2434 1.3121 1.3842 14600 1.5395 1.6229 1.71031.8021 1.8983 1.9992 2.1049 12 1.0617 1.1268 1.1956 12682 1.3449 1425815111 1.6010 1.6959 1.79591.9012 2.0122 2.1291 2.2522 13 1.0670 1.1381 1.2136 1.2936 1.3785 1.468515640 1.6651 1.7722 1.88562.0058 2.1329 2.2675 2.4098 14 1.0723 1.1495 1.2318 1.3195 1.4130 1.5126 1.6187 1.7317 1.8519 1.97992.1161 2.2609 2.4149 2.5785 15 1.0777 1.1610 1.2502 1.3459 1.4483 1.5580 1.6753 1.8009 1.9353 2.07892.2325 2.3966 2.5718 2.7590 16 1.0831 1.1726 1.2690 1.3728 1.4845 1.6047 17340 1.8730 2.0224 2.1829 2.3553 25404 2.7390 2,9522 17 1.0885 1.1843 1.2880 1.4002 1.5216 165281.7947 1.9479 2.1134 2.29202.4848 2.6928 2.9170 3.1588 18 1.0939 1.1961 1.3073 1.4282 15597 1.7024 1.8575 2.0258 2.2085 2.4066 2.6215 2.8543 3.10673.3799 19 1.0994 1.2081 1.3270 1.4568 1.59871.7535 1.9225 2.1068 2.3079 2.5270 2.7656 3.0256 3.3086 3.6165 20 1.1049 1.2202 1.3469 1,4859 1.6386 1806119898 2.1911 24117 2.6533 29178 32071 3.5236 3,8697 21 1.1104 1.2324 1.3671 1.5157 1.6796 1.8603 2.0594 2.2788 2.5202 2.78603.0782 3.3996 3.7527 4.1406 22 1.1160 1.2447 1.3876 1.54601.7216 1.9161 2.1315 2.36992.6337 2.9253 3.2475 3.6035 3.9966 4.4304 23 1.1216 1.2572 1.4084 1.5769 1.7646 1.9736 2.2061 2.4647 2.7522 3.0715 3.4262 3.8197 4.2564 4.7405 24 1.1272 1.2697 1.4295 1,6084 1.8087 2.0328 2.2833 25633 2.8760 3.2251 3.6146 4.0489 453315.0724 25 1.1328 1.2824 1.4509 1.6406 1.8539 2.0938 2.3632 26658 3.0054 3.3864 3.8134 42919 4.8277 5.4274 1.1038 1.1255 1719 26939 14.4 184 3.745 781 11.6 21 8.14 01 8.6 1.144 10.2 43 1.2392 1.5340 1.8969 2.3432 28915 3.56454.3897 5.4005 6.6374 8.1497 9.996712 2505 14.9980 18.3444 22.4163 27.3666 33.379440.6761 49.5230 60.2401 44 1.2454 1.54931.9253 2.3901 29638 3.67154.5433 5.6165 6.9361 8.5572 10.5465 12.9855 15.9729 19.628524.0975 29.5560 36 216744.337054.227T 66.2641 45 | 1.25 16 ? 1.5648 | 1.9542 | 2.4379 | 3.0379 | 3.7816 | 4.7024 | 5.8412 | 7.2482 | 8.9850 | 11.1266 | 13.7646 | 17.0111 | 21.0025 | 25.9048 | 31.9204 | 392951 | 48.3273 | 59.3793 | 72.8905 46 1.2579 1.5805 1.9835 2.4866 3.11393.8950 4.8669 6.0748 7.5744 9.4343 11.7385 14.5905 18.1168 22.4726 27.8477 34.4741 42.6352 52.6767 65.0204 80.1795 47 1.2642 1.59632.0133 2.5363 3.1917 4.01195.0373 6.3178 7.9153 9.9060 12 384115.4659 19.2944 24.0457 29.9363 31.2320 46 259257.4176 71.1973 88.1975 49 1.2768 1.62832.0741 2.8388 3.3533 4.2562 5.3961 6.8333 8.843710.9213 13.7838 17.3775 21.8842 27.5299 34.5951 43 4274 54.457468.2179 85.3674 106.7190 5420 18.420223.3067 29.4570 37.1897 46.9016 59.0863 74.357593.4773 117.3909

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