Which do you prefer: a bank account that pays 4.2% per year (EAR) for three years or a. An account that pays 2.6% every six months for three years? b. An account that pays 7.9% every 18 months for three years? c. An account that pays 0.61% per month for three years? (Note: Compare your current bank EAR with each of the three alternative accounts. Be careful not to round any intermediate steps less than six decimal places.)

If you deposit

$1

into a bank account that pays

4.2%

per year for three years:

The amount you will receive after three years is

$1.131371.13137.

(Round to five decimal places.)

a. An account that pays

2.6%

every six months for 3 years?

If you deposit

$1

into a bank account that pays

2.6%

every six months for three years:

The amount you will receive after three years is

$nothing.