Question
All compounding/discounting should be done using PV/FV functions in Excel. please do not answer if you are not 100% sure . please show work and
All compounding/discounting should be done using PV/FV functions in Excel. please do not answer if you are not 100% sure . please show work and be clear when answering ! thank you :)
1) You are planning to deposit $100,000 into a bank account and to leave the funds on deposit for 12 years. Bank A pays interest at a rate of 3%, compounded annually. Bank B pays interest at a rate of 2.5%, compounded semiannually. Bank C pays interest at a rate of 2.2% compounded daily. a) If you put your money into Bank A, how much will you have in the account after the 12 years? b) If you put your money into Bank B, how much will you have in the account after the 12 years? c) If you put your money into Bank C, how much will you have in the account after the 12 years? d) What factors contribute to the difference in the amounts in a, b and c? Explain.
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