# Survey of Mathamtics

You want to invest \$7500 for 15 years. The local bank offers a rate of 6.5% compounded monthly. The local credit union offers a rate of 6.75% compounded semiannually. Which is the better option? How did you arrive at this conclusion?

1. 👍 0
2. 👎 0
3. 👁 120
1. Calculate the effective interest, i.e. actual performance over a year:

Local bank = (1+0.065/12)^12 =1.066971852002543

Credit union = (1+0.0675/2)^2
= 1.0686390625

So the credit union pays a little more.

1. 👍 0
2. 👎 0

## Similar Questions

1. ### math

A local bank offers an investment option with a simple interest rate of 3.60% per annum. If you invest \$3200.00, how much interest will you earn in 7 years?

asked by Synthia on June 4, 2014
2. ### math

Guys please i need your help i am not getting the answer over the following questions. 1) Maria banked sh. 95,000 in her bank account. If the bank gives a simple interest of 17% per year, how much will she get after 3 years? 2) If

asked by kelvin on May 11, 2018
3. ### math

Tamra is having difficulty deciding whether to put her savings in the Albina Community Bank or in the Umpqua Bank. Albina offers a 12% rate compounded quarterly, and Umpqua offers 14% compounded semiannually. Tamra has \$40,000 to

asked by Diana on September 15, 2019

Jane is having difficulty deciding whether to put her savings in the Mystic Bank or in the Four Rivers Bank. Mystic offers a 12% rate compounded quarterly, and Four Rivers offers 14% compounded semiannually. Jane has \$40,000 to

asked by Ash on April 4, 2016

a) You have N\$ 10,000 to invest, which you want to grow to N\$ 100,000. If the bank offers you an interest rate of 6% p.a. compounded monthly, how long must you invest the money for (in months or years)? Round your answer to one

asked by Lassen on February 15, 2017
1. ### math

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

asked by Kat on April 2, 2013
2. ### math

allow 2 summers of working, Samuel has decided to invest his earnings. SAMUELS BANK OFFERS TWO CDS, a preferred CD \$10,000 minimum at 1% interest, or a standard CD with \$7000 minimum at 2%interest earned annually. Samuel has \$8000

asked by donny humphreys on January 12, 2015
3. ### Algebra 2

A man is planning to invest up to \$22,000in bank X or bank Y or both. He wants to invest at least \$2,000 but no more than \$14,000 in bank X. Bank Y doesn't insure more than a \$15,000 investment so he will not invest no more than

asked by Kelsie on December 15, 2010
4. ### math algebra

Mrs. martinez has \$10,000 to invest.One bank offers her a return of 7.5% on the whole sum. Another bank offers her a return of 8% on part of the sum, and 6% on the rest of the sum. How much of the \$10,000 would need to be invested

asked by kevin on November 7, 2012
5. ### Math

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.

asked by Megan on April 13, 2014

More Similar Questions