Question: QUESTION 3 Chaim has won $ 5 0 0 0 and wants to save it towards buying a house in six years when he finishes

QUESTION

3

Chaim has won $

5000

and wants to save it towards buying a house in six years when he finishes his law degree. He has the choice between an account that compounds monthly with an APR of

7 %

and another account that also has a

7 %

APR but compounds semi

-

annually. Round all answers appropriate to the context.

How much will he have in

6

years with the first option

(

monthly

) ?

How much will he have in

6

years with the second option

(

semi

-

annually

) ?

How much more interest will he have if he chooses the first option?

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