erek can deposit $203.00 per month for the next 10 years into an account at Bank...

erek can deposit $203.00 per month for the next 10 years into an account at Bank A. The first deposit will be made next month. Bank A pays 13.00% and compounds interest monthly. Derek can deposit $2,592.00 per year for the next 10 years into an account at Bank B. The first deposit will be made next year. Bank B compounds interest annually. What rate must Bank B pay for Derek to have the same amount in both accounts after 10 years? round answer 4 decimal places

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Expert Solution

Value after 10 years was $49,539.49

Hence, Interest rate of Bank B is 0.1376

jeff jeffy answered 1 year ago

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