Posted by **Maddy** on Tuesday, April 15, 2014 at 6:51pm.

Jason Printing has $85,000 to invest. They can invest in Wilder Revenue at 10% compounded semiannually or at Cheapskate Investments at 9.8% compounded monthly.

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 -
**Damon**, Tuesday, April 15, 2014 at 7:37pm
1.05^2 - 1 = 10.25 APY Wilder

1.0081666^12 - 1 = 10.2524 APY Cheapskate

so go with cheapskate

ten years

1.05^20 =2.6532

*85,000 = 225,530.30

1.0008166667^120 = 2.65387

*85,000 = 225,579.18

Cheapskate is 48.88 better

- Math -
**maddy**, Saturday, October 18, 2014 at 4:24pm
fun

## Answer This Question

## Related Questions

- Math - Jason Printing has $85,000 to invest. They can invest in Wilder Revenue ...
- Math - Jason Printing has $85,000 to invest. They can invest in Wilder Revenue ...
- math - Jim wants to deposit money in an account to save for a new stereo system ...
- Math - James has 10,000 to invest. If he invest money in a savings account that ...
- math - Compound Interest Question James has 10,000 to invest. If he invest money...
- math - A lender gives you a choice between the following two 30-year mortgages ...
- Math - Using the formula. I =Prt ,calculate the simple interest where t=1/n and ...
- matttth help please - 1. Mike wants to invest money every month for 40 years. ...
- College Algebra and Finance - Please help! Just need the answer... A lender ...
- math - Jim wants to deposit money in an account to save for a new stereo system ...

More Related Questions