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Assume one bank offers you a nominal annual interest rate of 6.00% compounded daily while another bank offers you continuous compounding at a 5.90% nominal
Assume one bank offers you a nominal annual interest rate of 6.00% compounded daily while another bank offers you continuous compounding at a 5.90% nominal annual rate. You decide to deposit $1,700 with each bank. Exactly five years later you withdraw your funds from both banks. What is the difference in your withdrawal amounts between the two banks? Assume 365 days in a year. Do not round your intermediate calculations.
a. $11.39
b. $0.00
c. $491.39
d. $137.10
e. $11.50
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