Question

Bank A offers a nominal annual interest rate of 4% compounded daily, while Bank B offers continuous compounding at a 3.4% nominal annual rate. If you deposit $5,000 with each bank, what will be the difference in the two bank account balances after 3 years?

Answer #1

hence the difference in these banks accounts
will be=5637.44192-5536.917359=**$100.5298337**

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1. If a bank advertises a savings account that pays a 6% nominal
interest rate compounded continuously, what is the effective annual
percentage rate?
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daily, while Bank B offers continuous compounding at a 4.6% nominal
annual rate. If you deposit $3,000 with each bank, what will be the
difference in the two bank account balances after two years?
(Show ALL work and formulas used!)

5A-1
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5A-2
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5A-3
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11.
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eBook
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