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Mathematics, 26.06.2020 15:01, ReaFam
Most banks pay you interest to put money in their bank. That is so they can lend it to other people at higher interest rates. Stephanie has $10,000 she wants to put in a Certificate of Deposit (CD) account so she can make the most interest on her money. She found that U. S. Bank near her house pays 2% on CDs, and also compounds interest quarterly A. How much will Stephanie have in her CD account after 6 months at U. S. Bank? B. How much would Stephanie have in her account after 6 months if interest was not compounded, and the bank only used a simple interest formula to calculate? C. What observation can you make about the difference between simple and compound interest when it comes to your money in the bank?
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Answers: 3
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