3-74. Peggy Sue was left $50,000 by her uncle. She has decided to put it into a savings ac- count for the next year or so. She finds that there are three different interest rates at sav- ihgs institutions: 5%% compounded annually,

3-74. Peggy Sue was left $50,000 by her uncle. She has decided to put it into a savings ac- count for the next year or so. She finds that there are three different interest rates at sav- ihgs institutions: 5%% compounded annually,

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

ChapterA: Appendix - Time Value Of Cash Flows: Compound Interest Concepts And Applications

Section: Chapter Questions

Problem 15E

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someone solve this but not use excel

3-74. Peggy Sue was left $50,000 by her uncle.
She has decided to put it into a savings ac-
count for the next year or so. She finds that
there are three different interest rates at sav-
ihgs institutions: 5%% compounded annually.

54% compounded quarterly, and 5%% com-
pounded continuously. She wishes to select the
savings institution that will give her the highest
return on her money. What interest rate should.
be selected? :

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