Posted by Kat on .
you are looking for a safe place to put 30,000.00 for one yr. Bank A offers 2.46% interest rate continuously. Bank B offers 2.48% quarterly and Bank C offers 2.47% monthly. Find the most effective rate of each to determine which would earn you the most interest at the end of one yr.

math 
john,
Bank A interest per years = (2.46*30000)/100= $738 per year
Bank B interest (2.48*30000)/100=744
Bank c interest (2.47*30000)/100=741
So Bank B the most interest at the end of one year. 
For John  math 
Reiny,
John, please do not attempt to answer questions, if you have no idea how that question is done.
Bank A > 30000 e^(.0246) = $30,747.15
Bank B > 30000(1 + .0248/4)^4 = $30,750.95
Bank C > 30000(1+.0247/12)^12 = $30,749.45
Plan B is the best way, but not for the "reasons" John gave. He didn't even include the compounding factor.