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 one year ago
Please help?
George is comparing three investment accounts offering different rates.
Account A: APR of 3.75 compounding monthly
Account B APR of 3.85 compounding quarterly
Account C APR of 3.95 compounding daily
Which account will give George at least a 4% annual yield?
 one year ago
Please help? George is comparing three investment accounts offering different rates. Account A: APR of 3.75 compounding monthly Account B APR of 3.85 compounding quarterly Account C APR of 3.95 compounding daily Which account will give George at least a 4% annual yield?

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satellite73
 one year ago
Best ResponseYou've already chosen the best response.1you need to compute three numbers \[(1+\frac{.0375}{4})^4\] \[(1+\frac{.0385}{12})^{12}\] \[(1+\frac{.0395}{365})^{365}\]

starrhunter
 one year ago
Best ResponseYou've already chosen the best response.0so which ever equals at least "4" will give me the answer then?

satellite73
 one year ago
Best ResponseYou've already chosen the best response.1each will look like \(1+.0somthing\) choose the one or ones with the something greater than or equal to 4

satellite73
 one year ago
Best ResponseYou've already chosen the best response.1none will give you 4 if the answer looks like \(1.04...\) then that is a yield of larger than \(4\%\) if the answer is \(1.03...\) then no

starrhunter
 one year ago
Best ResponseYou've already chosen the best response.0wait the first two equations are mixed up am i right?

satellite73
 one year ago
Best ResponseYou've already chosen the best response.1oh yeah my fault, sorry

satellite73
 one year ago
Best ResponseYou've already chosen the best response.1\[(1+\frac{.0375}{12})^{12}\]

starrhunter
 one year ago
Best ResponseYou've already chosen the best response.0it's quite alright. I know how to set up the problem now. but about the yeild, the number won't equal 4, but if the last digit in the number is greater than or equal to 4 than that is the answer i would choose?

satellite73
 one year ago
Best ResponseYou've already chosen the best response.1\[(1+\frac{.0385}{4})^{4}\] good catch

satellite73
 one year ago
Best ResponseYou've already chosen the best response.1here is the first one http://www.wolframalpha.com/input/?i=%281%2B.0375%2F12%29^12

satellite73
 one year ago
Best ResponseYou've already chosen the best response.1you can see that the answer is \[1.033815...\]

starrhunter
 one year ago
Best ResponseYou've already chosen the best response.0so that one can be ruled out

satellite73
 one year ago
Best ResponseYou've already chosen the best response.1so this one is out since it is smaller than \(1.04\)

starrhunter
 one year ago
Best ResponseYou've already chosen the best response.0I'll try the second one..

satellite73
 one year ago
Best ResponseYou've already chosen the best response.1ok you can edit the one i did to compute it if you like

starrhunter
 one year ago
Best ResponseYou've already chosen the best response.0is the little 4 on the outside an exponent?

satellite73
 one year ago
Best ResponseYou've already chosen the best response.1yes, that needs to be a 4, and also the denominator under \(.0385\) should be a 4 also

starrhunter
 one year ago
Best ResponseYou've already chosen the best response.01.039 is what it gave me

starrhunter
 one year ago
Best ResponseYou've already chosen the best response.0it is the last one, it gave me 1.04

satellite73
 one year ago
Best ResponseYou've already chosen the best response.1then i guess that is the one you want

starrhunter
 one year ago
Best ResponseYou've already chosen the best response.0thanks for the help

satellite73
 one year ago
Best ResponseYou've already chosen the best response.1you good with this?
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