Meadow Company wants to invest its net profits of $$105,000$ for $7$ years in either a credit union or a local bank. The credit union provides interest of $4\mathrm{.}50\%$ compounded monthly, while the local bank provides interest of $4\mathrm{.}75\%$ compounded semi$-$annually.

a$.$ What would be the maturity value of the investment under the credit union option?

b$.$ What would be the maturity value of the investment under the local bank option?

$$0\mathrm{.}00$

Round to the nearest cent

c$.$ Which of the two options will yield the highest return?

Answer rating: 100% (QA)

To calculate the maturity value of the investment under the credit union option we can use the formu... View the full answer