A Bank and B Credit Union advertise differing interest rates for
savings.
A Bank pays you (depositor) a nominal rate of 5%/year CQ
(quarterly)
B Credit Union pays depositors 4.75%/year CD (daily)
Which has the better rate for you?
Show all your work for credit..
2. There is a rule of thumb which can be used as an approximation called the
Rule of 72 to find
interest or period of time, given the other quantity, and it is given as ni=72.
If $1 is invested for
10 years, what compound rate is necessary for the money to double?.
How long does it take for the money to double at 12%? .