Question
You have just sold your old car for $3,649 and decided not to buy a new one given that you're quite happy with the public
You have just sold your old car for $3,649 and decided not to buy a new one given that you're quite happy with the public transportation in C-U. You want to invest the entire amount, so when you graduate exactly two years from today, you can use the money as a down payment on a new, much fancier automobile. Given your recent experiences with your stock market investments, you decide to play it safe and deposit the whole sum in a savings account. You have contacted several local banks to get their interest rates, which are given below. Assuming that your deposits are federally insured and the interest rates are locked, which bank will give you the highest returns on your investment?
a.Champaign 56thCommercial Bank: 4.99% APR compounded quarterly
b.Last Illinois Loan & Savings Bank: 4.96% APR compounded daily (365 days per year)
c.Imperial Bank of Rantoul: 5.03% APR compounded twice a year
d.Farmer City Farmers' Bank: 5.06% APR compounded annuallye.Royal Canadian Wheat Bank: 4.99% APR compounded monthly
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