Bassel is comparing two accounts where one pays 3.45% quarterly and the second pays 3.4% daily....

Bassel is comparing two accounts where one pays 3.45% quarterly and the second pays 3.4% daily.
a. What is the effect rate for each?
b. If he has $5,000 to deposit how much will the balance be in 10 years?

Bill invests $6,700 in a savings account that compounds interest monthly at a rate of 3.75%. Ted invests $6,500 in a savings account that compound interest annually at a rate of 3.8%.
a. Find the effective rate for each account.
b. Who will have the higher accumulated balance after 5 years?

Please show work, preferably in excel. Thank you.

Expert Solution

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jeff jeffy answered 1 year ago

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