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aliya0001 [1]
3 years ago
14

A bank offers a money market account paying 8.7​% interest compounded annually. A competing bank offers a money market account p

aying 8.5​% interest compounded daily.​ (Assume 360 days in a​ year.) Which account is the better​ investment?
Mathematics
1 answer:
stich3 [128]3 years ago
5 0
The answer is 8.5% interest compounded daily.

EXPLANATION

Regardless of your rate, the more often interest is paid, the more beneficial the effects of compound interest.

A daily interest account, which has 360 compounding periods a year, in this case, will generate more money than an account with an annual compounding, which has one compounding period per year.
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Answer:

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Step-by-step explanation:

The circle with center in O(xo,yo) and radius r has the equation:

(x-xo)²+(y-yo)²=r²

We have:

x²+y²+ax+2y+3=0

But: x²+ax=x²+2(a/2)x+a²/4-a²/4= (x+a/2)²-a²/4

And

y²+2y+3=y²+2y+1+2=(y+1)²+2

Replacing, we get:

(x+a/2)²-a²/4+(y+1)²+2=0

(x+a/2)²+(y+1)²=a²/4-2=(a²-8)/4

By visual inspection we note that:

- center of circle: O(-a/2, -1)

- radius: r=sqrt((a²-8)/4)=0.5×sqrt(a²-8). This means a²>8 or a>2×sqrt(2)

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