Wednesday

September 3, 2014

September 3, 2014

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

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 7:37pm1.05^2 - 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

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