Posted by **fawn** on Tuesday, January 8, 2013 at 8:56pm.

I have been staring at this problem forever, and cant seem to dig it up in my book. Please help!

Two competing bank are trying to attract customers.

(a) Ally Bank has an account which earns 25% interest every 10 years. Assuming the interest is compounded weekly, find both the nominal and effective annual interest rates.

(b) Patriot Bank has a continuously compounded account with 3% interest. If 100 dollars is deposited in the account at Ally Bank and 70 is deposited in the account at Patriot Bank, exactly how long will it take for the money in the two accounts to be equal?

## Answer This Question

## Related Questions

- Math - Sam gets deposits a total of $3500 every three months to the bank which ...
- Math - Bill has a savings account in Sierra Bank and earns interest at 2 1/4%. ...
- math - Suppose $5000 is deposited in a bank account that compounds interest four...
- math - Suppose $5000 is deposited in a bank account that compounds interest ...
- statistics - The First National Bank of Wilson has 680 checking account ...
- math - you deposit $ 900 in a savings account that earns 4%interest coumpounded ...
- math - Starting from today, every month you save $500 into a bank account with ...
- calculus - Suppose $5000 is deposited in a bank account that compounds interest ...
- Math help - Samantha finds a bank, Star Bank, which offers a CD account with a 2...
- Math Help Please! - A bank offers two interest account plans. Plan A gives you 6...

More Related Questions