Question

In 2014, Bank A paid 2% interest, compounded daily, on a 8-year CD, while the Bank B paid 2% compounded quarterly. a. What are the effective rates for the two CDs? Use a 365-day year. b. Suppose $5000 was invested in each of these accounts. Find the compound amount after eight years for each account. a. The effective rate for Bank A is %. (Type an integer or decimal rounded to three decimal places as needed.) The effective rate for Bank B is %. (Type an integer or decimal rounded to three decimal places as needed.) b. For Bank A, the compound amount after eight years is $. (Do not round until the final answer. Then round to the nearest cent as needed.) For Bank B, the compound amount after eight years is $. (Do not round until the final answer. Then round to the nearest cent as needed.)

          In 2014, Bank A paid 2% interest, compounded daily, on a 8-year CD, while the Bank B paid 2% compounded quarterly.
a. What are the effective rates for the two CDs? Use a 365-day year.
b. Suppose $5000 was invested in each of these accounts. Find the compound amount after eight years for each account.
a. The effective rate for Bank A is %.
(Type an integer or decimal rounded to three decimal places as needed.)
The effective rate for Bank B is %.
(Type an integer or decimal rounded to three decimal places as needed.)
b. For Bank A, the compound amount after eight years is $.
(Do not round until the final answer. Then round to the nearest cent as needed.)
For Bank B, the compound amount after eight years is $.
(Do not round until the final answer. Then round to the nearest cent as needed.)

In 2014, Bank A paid 2% interest, compounded daily, on a 8-year CD, while the Bank B paid 2% compounded quarterly.
a. What are the effective rates for the two CDs? Use a 365-day year.
b. Suppose 5000 was invested in each of these accounts. Find the compound amount after eight years for each account.
a. The effective rate for Bank A is %.
(Type an integer or decimal rounded to three decimal places as needed.)
The effective rate for Bank B is %.
(Type an integer or decimal rounded to three decimal places as needed.)
b. For Bank A, the compound amount after eight years is.
(Do not round until the final answer. Then round to the nearest cent as needed.)
For Bank B, the compound amount after eight years is .
(Do not round until the final answer. Then round to the nearest cent as needed.)

Added by Nuria B.

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