Question
You have $10,000 to invest. Your Grandmother, who doesnt trust banks, has advised you to put the money under your mattress to save for the
You have $10,000 to invest. Your Grandmother, who doesnt trust banks, has advised you to put the money under your mattress to save for the future. Conversely, your Mother suggests you open a savings account at a bank. In your town, the banks are currently offering 3% interest. One bank (Bank A) compounds the interests each quarter (March 31, June 30, September 30, and December 31). The other bank (Bank B) compounds the interest on an annual basis (December 31). Assuming your would save your money for the next 10 years, what would your balance be in Bank A and in Bank B? Please describe your calculations within your response.
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