SOLUTION: fleet street savings bank pays interest at the rate of 4.25% per year compounded weekly in a savings account whereas washington bank pays interest at the rate of 4.125% per year co

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Question 1110091: fleet street savings bank pays interest at the rate of 4.25% per year compounded weekly in a savings account whereas washington bank pays interest at the rate of 4.125% per year compounded daily. which bank offers a better rate of interest.
Answer by greenestamps(13203) About Me  (Show Source):
You can put this solution on YOUR website!


The growth factor over a year for fleet street is
%281%2B%28.0425%2F52%29%29%5E52+=+1.043397945 for an APR of about 4.34%

The growth factor over a year for washington bank is
%281%2B%28.04125%2F365%29%29%5E365+=+1.042110172 for an APR of about 4.21%

The rate is better at fleet street.

You could also determine that by comparing the growth factors over one week.

For fleet street that growth factor is 1%2B.0425%2F52+=+1.000817308
For washington bank it is %281%2B.04125%2F365%29%5E7+=+1.000791364