Question

melvin indecision

Melvin Indecision has difficulty deciding whether to put his savings in Mystic Bank or Four Rivers Bank. Mystic offers 10 % interest compounded semiannually. Four Rivers offers 6 % interest compounded quarterly. Melvin has $10,800 to invest. He expects to withdraw the money at the end of 5 years. Calculate interest for each bank and identify which bank gives Melvin the better deal? (Use the Table provided.) (Do not round intermediate calculations. Round your answer to the nearest cent.) Interest Mystic Four Rivers (Cick 1o salect Better deal

Answer 1

Amount dapaSi leol B10800 Com potn diol Seminaually fir myshic Syears 10 S00 (1ti) 28012.4 ivers6. Compaundid quartely Four fux 5 years 10800 (ti)n 20 2656.99 $12657 The best cleal is to invest Pn Four vivers Bank