Joan has savings of $12000 on June 1. Since she may need some of the savings during the next 3 months she is considering two options at her bank. an Investment builder saving account earns a 2.25% rate of interest. The interest is calculated on the daily closing balance and paid on the first day of the following month. A 90- to 179- day cashable term deposit earns a rate of 2.8% paid at
Joan has savings of $12000 on June 1. Since she may need some of the savings during the next 3 months she is considering two options at her bank. an Investment builder saving account earns a 2.25% rate of interest. The interest is calculated on the daily closing balance and paid on the first day of the following month. A 90- to 179- day cashable term deposit earns a rate of 2.8% paid at maturity. If interest rates do not change and Joan does not withdraw any of the funds how much more will she earn from the term deposit up to September 1? (Keep in mind that savings accounts interest paid on the first day of the month will itself subsequently earn interest during the subsequent month.)
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