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February 28, 2015

February 28, 2015

Posted by **Megan** on Sunday, April 13, 2014 at 10:14pm.

a) Calculate the two APYs and compare them to determine your answer. Make sure to distinguish which APY belongs to which bank. At which bank should they invest?

b) If they were to invest this money for ten years. How much more will they earn if investing with your choice from part a? Compare the two future values.

- Math -
**Reiny**, Sunday, April 13, 2014 at 10:39pmWilder:

amount = 85000(1.05)^2 = $93,712.50 after 1st year

Cheapskate:

amount = 85000(1.0081666..)^12 = $93,714.53 after 1st year

b) you try it, (you only have to change the exponents)

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