Melvin Indecision has difficulty deciding whether to put his savings in Mystic Bank or Four Rivers Bank. Mystic offers 16% interest compounded semiannually. Four Rivers offers 12% interest compounded quarterly. Melvin has $11,300 to invest. He expects to withdraw the money at the end of 10 years. Calculate interest for each bank and identify which bank gives Melvin the better deal? (Use the Table provided.) Note: Do not round intermediate calculations. Round your answers to the nearest cent. Interest Mystic Four Rivers Better deal
Melvin Indecision has difficulty deciding whether to put his savings in Mystic Bank or Four Rivers Bank. Mystic offers 16% interest compounded semiannually. Four Rivers offers 12% interest compounded quarterly. Melvin has $11,300 to invest. He expects to withdraw the money at the end of 10 years. Calculate interest for each bank and identify which bank gives Melvin the better deal? (Use the Table provided.) Note: Do not round intermediate calculations. Round your answers to the nearest cent. Interest Mystic Four Rivers Better deal
Excel Applications for Accounting Principles
4th Edition
ISBN:9781111581565
Author:Gaylord N. Smith
Publisher:Gaylord N. Smith
Chapter27: Time Value Of Money (compound)
Section: Chapter Questions
Problem 1E
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