Question

Bank A pays 4.79% compounded monthly, while Bank B pays 4.8% compounded quarterly.
Which bank pays more?

Answer 1

value of $1.00 at end of 1 year:

Bank A : amount = (1 +.0479/12)^12 = ...
Bank B : amount = (1 + .048/4)^4 = ..

compare the results

Answer 2

bank a