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Which do you prefer a bank account that pays 5 percent per year EAR for three years or an account that pays 2.5 percent every six months for three years?
The latter of the two would be your better option, assuming the interest is properly compounded.
Consider. In the first case, your resulting payment would be:
P * 1.053 = P * 1.157625, or a total gain of just over 15.76%
In the second case, your resulting payment would be:
P * 1.0256 = P * 1 .159693418212890625, for a total gain of just over 15.96%
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An account of an APR of 14 percent with quarterly compounding increases in value every three months by what percent?
quarterly in a year means 4. Therefore, 14/4 = 3.5. So it will increase by 3.5%
What is 7 percent compounded monthly?
It means that at the end of every month, (7/12) of 1 percent of the lowest value of your account during the previous month is added to it.
How many months are in 3.75 years?
Since there are 12 months to every 1 year, we multiply 12 by 3.75 to get the answer of 45 months.
True or False The GPC is normally reissued every 12 months to each cardholder?
True or False The GPC is normally reissued every 12 months to each cardholder
What is every three months called?
a quarter of a year
