Mishu wants to invest an inheritance of $50 000 for one year. His credit union offers 3.95% for a one-year term or 3.85% for a six-month term.
(a) How much will Mishu receive after one year if he invests at the one-year rate?
(b) How much will Mishu receive after one year if he invested for six months at a time at 3.85% each time?
(c) What would the one-year rate have to be to yield the same amount of interest as the investment described in part (b)?