Bank Z pays 4 percent interest, compounded monthly, on its long-term deposits. Bank A pays 4 percent interest, compounded quarterly, on its savings…

Bank Z pays 4 percent interest, compounded monthly, on its long-term deposits. Bank A pays 4 percent interest, compounded quarterly, on its savings accounts. You want to deposit sufficient funds today so that you will have $2,400 in your account 3 years from today. The amount you must deposit today:

A.is the same regardless of which bank you choose because they both pay compound interest.

B.is the same regardless of which bank you choose because they both pay 4 percent interest.

C.is the same regardless of which bank you choose because they both pay simple interest.

D.will be greater if you invest with Bank A.

Order the answer to view it

Assignment Solutions
Assignment Solutions