Asked by Kat

you are looking for a safe place to put 30,000.00 for one yr. Bank A offers 2.46% interest rate continuously. Bank B offers 2.48% quarterly and Bank C offers 2.47% monthly. Find the most effective rate of each to determine which would earn you the most interest at the end of one yr.
Answered by john
Bank A interest per years = (2.46*30000)/100= $738 per year
Bank B interest (2.48*30000)/100=744
Bank c interest (2.47*30000)/100=741
So Bank B the most interest at the end of one year.
Answered by Reiny
John, please do not attempt to answer questions, if you have no idea how that question is done.

Bank A ---> 30000 e^(.0246) = $30,747.15
Bank B ---> 30000(1 + .0248/4)^4 = $30,750.95
Bank C ---> 30000(1+.0247/12)^12 = $30,749.45

Plan B is the best way, but not for the "reasons" John gave. He didn't even include the compounding factor.
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