Suppose you are looking for a new savings account. There are two possible savings accounts offered by your local banks, and they provide you with the following offers: 

• The first account offers an annual rate of 7 percent compounded monthly on your investment. 
• The second account offers an annual rate of 7.25 percent compounded semiannually. 

As a potential investor, with which account would you choose to invest your money?

Answer rating: 100% (QA)

SOLUTION To determine which savings account provides the better return I will calculate the effect... View the full answer