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Minchanka [31]
2 years ago
9

Joseph is a friend of yours. He has plenty of money but little financial sense. He received a gift of $12,000 for his recent gra

duation and is looking for a bank in which to deposit the funds. Partners' Savings Bank offers an account with an annual interest rate of 3% compounded semiannually, while Selwyn's offers an account with a 2.75% annual interest rate compounded continuously. Calculate the value of the two accounts at the end of one year, and recommend to Joseph which account he should choose.
Mathematics
1 answer:
Nata [24]2 years ago
5 0

Answer:

The value for partners savings bank at the end of 1 year is $12,362.70. The value for Selwyn's at the end of 1 year is $12,334.58. The future value obtained by investing in Partners Saving Bank is more as compared to Selwyn’s Saving Bank. Hence Joseph is recommended to choose Partners Saving Bank.

Step-by-step explanation:

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