Question

"You have three choices in placing your $14,000 in a bank account today for 9 years. Bank A pays 7.4% compounded annually. Bank B pays 6.82% compounded quatarly. Bank C pays 7.15% compounded continuously. Enter the amount of money that the best option would return after 9 years. There is no inflation."

Answer 1

Bank A
Amount Invested	$                      14,000.00
t=	9 Years
n=	1
Interest	7.40%
A=P*(1+r/n)^n*t
14000*(1+7.40%)^1*9
	$                      26,617.46
Amount	$                      26,617.46
Interest	$                      12,617.46
Bank B
Amount Invested	$                      14,000.00
t=	9 Years
n=( n umber of times in year payment)	4
Interest	6.82%
Quartly Intt=(6.82%/4)	0.01705
A=P*(1+r/n)^n*t
14000*(1+.01705)^36
	$                      25,730.66
Amount	$                      25,730.66
Interest	$                      11,730.66
Bank C
P=	$                      14,000.00
r=	7.15%
t=	9	Years
F=(Excel Formula)	14000*EXP(7.15%*9)
Amount	$                      26,643.82
Interest	$                      12,643.82
	Amount	Interest
Bank A	$                      26,617.46	$ 12,617.46
Bank B	$                      25,730.66	$ 11,730.66
Bank C	$                      26,643.82	$ 12,643.82
Best Option is to deposit amount in Bank C