Interest Rates Savings accounts state an interest rate and a compounding period. If...

Interest Rates Savings accounts state an interest rate and a compounding period. If the amount deposited is P, the stated interest rate is r, and interest is compounded m times per year, then the balance in the account after one year is For instance, if $1000 is deposited at 3 % interest compounded quarterly (that is, 4 times per year), then the balance after one year is

Interest rates with different compounding periods cannot be compared directly. The concept of APY (annual percentage yield) must be used to make the comparison. The APY for a stated interest rate r compounded m times per year is defined by

(The APY is the simple interest rate that yields the same amount of interest after one year as the compounded annual rate of interest.) Write a program to compare interest rates offered by two different banks and determine the most favorable interest rate. See Fig. 4.24.