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anonymous
 3 years 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?
anonymous
 3 years 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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anonymous
 3 years ago
Best ResponseYou've already chosen the best response.0you need to compute three numbers \[(1+\frac{.0375}{4})^4\] \[(1+\frac{.0385}{12})^{12}\] \[(1+\frac{.0395}{365})^{365}\]

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

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

anonymous
 3 years ago
Best ResponseYou've already chosen the best response.0none 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

anonymous
 3 years ago
Best ResponseYou've already chosen the best response.0wait the first two equations are mixed up am i right?

anonymous
 3 years ago
Best ResponseYou've already chosen the best response.0oh yeah my fault, sorry

anonymous
 3 years ago
Best ResponseYou've already chosen the best response.0\[(1+\frac{.0375}{12})^{12}\]

anonymous
 3 years 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?

anonymous
 3 years ago
Best ResponseYou've already chosen the best response.0\[(1+\frac{.0385}{4})^{4}\] good catch

anonymous
 3 years ago
Best ResponseYou've already chosen the best response.0here is the first one http://www.wolframalpha.com/input/?i=%281%2B.0375%2F12%29^12

anonymous
 3 years ago
Best ResponseYou've already chosen the best response.0you can see that the answer is \[1.033815...\]

anonymous
 3 years ago
Best ResponseYou've already chosen the best response.0so that one can be ruled out

anonymous
 3 years ago
Best ResponseYou've already chosen the best response.0so this one is out since it is smaller than \(1.04\)

anonymous
 3 years ago
Best ResponseYou've already chosen the best response.0I'll try the second one..

anonymous
 3 years ago
Best ResponseYou've already chosen the best response.0ok you can edit the one i did to compute it if you like

anonymous
 3 years ago
Best ResponseYou've already chosen the best response.0is the little 4 on the outside an exponent?

anonymous
 3 years ago
Best ResponseYou've already chosen the best response.0yes, that needs to be a 4, and also the denominator under \(.0385\) should be a 4 also

anonymous
 3 years ago
Best ResponseYou've already chosen the best response.01.039 is what it gave me

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

anonymous
 3 years ago
Best ResponseYou've already chosen the best response.0then i guess that is the one you want
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