## starrhunter Group Title 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 one year ago

1. satellite73 Group Title

you need to compute three numbers $(1+\frac{.0375}{4})^4$ $(1+\frac{.0385}{12})^{12}$ $(1+\frac{.0395}{365})^{365}$

2. starrhunter Group Title

so which ever equals at least "4" will give me the answer then?

3. satellite73 Group Title

each will look like $$1+.0somthing$$ choose the one or ones with the something greater than or equal to 4

4. satellite73 Group Title

none 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

5. starrhunter Group Title

wait the first two equations are mixed up am i right?

6. satellite73 Group Title

oh yeah my fault, sorry

7. satellite73 Group Title

$(1+\frac{.0375}{12})^{12}$

8. starrhunter Group Title

it'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?

9. satellite73 Group Title

$(1+\frac{.0385}{4})^{4}$ good catch

10. satellite73 Group Title

lets compute one

11. satellite73 Group Title

here is the first one http://www.wolframalpha.com/input/?i=%281%2B.0375%2F12%29^12

12. satellite73 Group Title

you can see that the answer is $1.033815...$

13. starrhunter Group Title

so that one can be ruled out

14. satellite73 Group Title

so this one is out since it is smaller than $$1.04$$

15. satellite73 Group Title

right

16. starrhunter Group Title

I'll try the second one..

17. satellite73 Group Title

ok you can edit the one i did to compute it if you like

18. starrhunter Group Title

is the little 4 on the outside an exponent?

19. satellite73 Group Title

yes, that needs to be a 4, and also the denominator under $$.0385$$ should be a 4 also

20. starrhunter Group Title

1.039 is what it gave me

21. satellite73 Group Title

me too

22. starrhunter Group Title

it is the last one, it gave me 1.04

23. satellite73 Group Title

then i guess that is the one you want

24. starrhunter Group Title

thanks for the help

25. satellite73 Group Title

you good with this?

26. satellite73 Group Title

yw

27. starrhunter Group Title

yes indeed :3