Sara has $4,000 that she can invest in any of three savings accounts for a 6-year period.
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Question:
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)
Related Book For
Principles Of Managerial Finance
ISBN: 9781292018201
14th Global Edition
Authors: Lawrence J. Gitman, Chad J. Zutter
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