SOLUTION: I need help with this question please.. Warwick wins $2800 and decides to start a savings fund to buy a car.He researches two banks to find the best investment deal.He finds the f

Question 466641: I need help with this question please..
Warwick wins $2800 and decides to start a savings fund to buy a car.He researches two banks to find the best investment deal.He finds the following information:
Trust Me Credit Union 7.4% pa.(nominal)compounded monthly
No Frills Bank 7.5% (nominal) compounded half yearly
a.) By calculating the effective interest rate(algebraically),decide which bank gives a better deal.
b.) If he decided to save with the No Frills Bank,approximately how long would it take for his money to double?(use the rule of 70)
c.) Check your answer to part b) using a more exact method.

Answer by rfer(16322) (Show Source): You can put this solution on YOUR website!
A=2800(1+0.074/12)^12
A=2800(1.00617)^12
A=2800*1.0766
A=3014.48
-------------------
A=2800(1+0.075/2)^2
A=2800(1.0375)^2
A=2800*1.0764
A=1313.92
--------------
9.33 yrs
------------
You do last part
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