11. Your local bank is offering three promotions: You can make a minimum investment of $50 and earn an annual interest rate of 2% for five years, a minimum investment of $100 and earn a quarterly interest rate of 0.5% for five years, or the bank will give you $25 for opening an account. Which offer will make the most money for you? Show evidence for your choice.
12. In 2009, company is hit by the recession and has to cut employee hourly wages by 4% every year for three years. If an employee’s hourly wage was $11.67 in 2009, what will it be in 2012?
compare
50(1 + 0.02)^5
100(1 + 0.005/4)^(4*5)
The 3rd option doesn't specify the interest rate for the $25
11.67 * 0.96^3 = ____