Melvin Indecision has difficulty deciding whether to put his savings in Mystic Bank or Four Rivers Bank. Mystic offers 10% interest compounded semiannually. Four Rivers offers 8% interest compounded quarterly. Melvin has $10,000 to invest. He expects to withdraw the money at the end of 4 years. Calculate the interest earned at the end of Melvin's investment period at each bank. Identify which bank gives him the better deal? Note: Do not round intermediate calculations. Round your answers to the nearest cent. Answer is complete but not entirely correct. Four Rivers $15,050.00 Better deal Mystic Bank Interest $ Mystic 16,937.50

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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Melvin Indecision has difficulty deciding whether to put his savings in Mystic Bank or Four Rivers Bank. Mystic offers 10% interest
compounded semiannually. Four Rivers offers 8% interest compounded quarterly. Melvin has $10,000 to invest. He expects to
withdraw the money at the end of 4 years.
Calculate the interest earned at the end of Melvin's investment period at each bank. Identify which bank gives him the better deal?
Note: Do not round intermediate calculations. Round your answers to the nearest cent.
Answer is complete but not entirely correct.
Four Rivers
$15,050.00
Better deal
Mystic Bank
Interest
$
Mystic
16,937.50
Transcribed Image Text:Melvin Indecision has difficulty deciding whether to put his savings in Mystic Bank or Four Rivers Bank. Mystic offers 10% interest compounded semiannually. Four Rivers offers 8% interest compounded quarterly. Melvin has $10,000 to invest. He expects to withdraw the money at the end of 4 years. Calculate the interest earned at the end of Melvin's investment period at each bank. Identify which bank gives him the better deal? Note: Do not round intermediate calculations. Round your answers to the nearest cent. Answer is complete but not entirely correct. Four Rivers $15,050.00 Better deal Mystic Bank Interest $ Mystic 16,937.50
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