Future values for various compounding
frequencies Delia Martin has $10,000 that she can deposit
in any of three savings accounts for a 3-year period. Bank A
compounds interest on an annual basis, bank B compounds interest
twice each year, and bank C compounds interest each quarter. All
three banks have a stated annual interest rate of 4%.
What amount would Ms. Martin have after 3 years, leaving all
interest paid on deposit, in each bank?
What effective annual rate (EAR)...