päring two banks. One bank Is online and offers a savings account Interest rate of 1.75% compounded quarterly. One bank is in your hometown and offers savings account interest rate of 1.72% compounded daily. You have $4500 to keep in a savings account for 2 years, so you need to decide which bank would pay more Interest. The online bank has an APY of what percentage? Round your percentage to three decimal places) 1.762 The hometown bank has an APY of what percentage? Round your percentage to three decimal places) 1.735 ✓ %. Therefore if you invest the same amount of money for the same amount of time, the bank that pays more interest is O Online bank Hometown bank %. How much more interest would you earn at the bank you just selected compared to the other bank? State your result rounded to two decimal places. Enter a number. Hint: You will need to use the original investment information to calculate the interest earned on each account.
päring two banks. One bank Is online and offers a savings account Interest rate of 1.75% compounded quarterly. One bank is in your hometown and offers savings account interest rate of 1.72% compounded daily. You have $4500 to keep in a savings account for 2 years, so you need to decide which bank would pay more Interest. The online bank has an APY of what percentage? Round your percentage to three decimal places) 1.762 The hometown bank has an APY of what percentage? Round your percentage to three decimal places) 1.735 ✓ %. Therefore if you invest the same amount of money for the same amount of time, the bank that pays more interest is O Online bank Hometown bank %. How much more interest would you earn at the bank you just selected compared to the other bank? State your result rounded to two decimal places. Enter a number. Hint: You will need to use the original investment information to calculate the interest earned on each account.
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
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:You are comparing two banks. One bank is online and offers a savings account interest rate of 1.75% compounded quarterly. One bank is in your hometown and offers a
savings account interest rate of 1.72% compounded daily. You have $4500 to keep in a savings account for 2 years, so you need to decide which bank would pay more
interest.
The online bank has an APY of what percentage? Round your percentage to three decimal places)
1.762
The hometown bank has an APY of what percentage? Round your percentage to three decimal places)
1.735
%.
✔
%.
Therefore if you invest the same amount of money for the same amount of time, the bank that pays more interest is
O Online bank
O Hometown bank
Enter a number.
How much more interest would you earn at the bank you just selected compared to the other bank? State your result rounded to two decimal places.
Hint: You will need to use the original investment information to calculate the interest earned on each account.
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