SOLUTION: Jane is having difficulty deciding whether to put her savings in the Mystic Bank or in the Four Rivers Bank. Mystic offers a 12 percent rate compounded quarterly while Four Rivers

Question 662186: Jane is having difficulty deciding whether to put her savings in the Mystic Bank or in the Four Rivers Bank. Mystic offers a 12 percent rate compounded quarterly while Four Rivers offers 14 percent compounded semiannually. Jane has $40,000 to invest and expects to withdraw the money at the end of five years. (Use the tables in the handbook) The best deal is: (Points : 2)
Four Rivers
Four Rivers for 1st two years
Mystic
Mystic for last two years
None of these

Answer by ewatrrr(24785) (Show Source): You can put this solution on YOUR website!

 

Hi,

 In General 

A = Accumulated Amount

P= principal = 40,000

r= annual rate = .12 0r .14

n= periods per year = 4 0r 2

t= years = 5

  0r   

   $72,244,45  0r $78,686.05

check the arithmetic and make Your conclusion 

RELATED QUESTIONS

I am currently without a book and some of these are still questionable to me. Anyone... (answered by solver91311)
Susan earned 75$ babysitting this month. Her goal is to put 30% of her earning into the... (answered by Boreal)
garland put 2b + 3 dollars in the bank in the first week. the following week he doubled... (answered by stanbon)
Sam put $2,000 in a savings account at his bank. After 10 years, his account balance was... (answered by richwmiller)
Elsa placed some money in a savings account for two years with a 6% interest rate. If the  (answered by Boreal,MathTherapy)
I need help solving this word problem into an equation:  Garland put 2b + 3 dollars in... (answered by josgarithmetic,MathTherapy)
Carina earns 860 dollars from selling cookies. If she put 55% of her earnings in the... (answered by josmiceli)
Steve put $500 into a savings account.At the end of one year,he earned $30 in... (answered by Fombitz)
Janice was given a piggy bank on her seventh birthday, and she put it to use immediately.  (answered by greenestamps)