You have $2,500 that you want to use to open a savings account.You have found five different accounts that are acceptable to you.All you have to do now is determine which account you want to use such that you can earn the highest rate of interest possible.Which account should you use based upon the annual percentage rates quoted by each bank? $$\begin{array} { l l }
\text { Account A: } & \text { 3.75\%, compounded annually } \
\text { Account B: } & 3.70 \% , \text { compounded monthly } \
\text { Account C: } & 3.70 \% , \text { compounded semi-annually } \
\text { Account D: } & \text { 3.65\%, compounded continuously } \
\text { Account E: } & 3.66 \% , \text { compounded quarterly }
\end{array}$$

Question

You have $2,500 that you want to use to open a savings account.You have found five different accounts that are acceptable to you.All you have to do now is determine which account you want to use such that you can earn the highest rate of interest possible.Which account should you use based upon the annual percentage rates quoted by each bank? $$\begin{array} { l l } 
\text { Account A: } & \text { 3.75\%, compounded annually } \
\text { Account B: } & 3.70 \% , \text { compounded monthly } \
\text { Account C: } & 3.70 \% , \text { compounded semi-annually } \
\text { Account D: } & \text { 3.65\%, compounded continuously } \
\text { Account E: } & 3.66 \% , \text { compounded quarterly }
\end{array}$$

Quizplus · Accepted Answer

The Answer of You have $2,500 that you want to use to open a savings account.You have found five different accounts that are acceptable to you.All you have to do now is determine which account you want to use such that you can earn the highest rate of interest possible.Which account should you use based upon the annual percentage rates quoted by each bank? $$\begin{array} { l l } 
\text { Account A: } & \text { 3.75\%, compounded annually } \
\text { Account B: } & 3.70 \% , \text { compounded monthly } \
\text { Account C: } & 3.70 \% , \text { compounded semi-annually } \
\text { Account D: } & \text { 3.65\%, compounded continuously } \
\text { Account E: } & 3.66 \% , \text { compounded quarterly }
\end{array}$$

You Have $2,500 That You Want to Use to Open