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March 16 Compound Interest 2

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Compound Interest
If you invest $1000 at an interest rate of 8% compounded semi-annually for 4 years how much money would you have?
Jim's Bank is offering 6% interest compounded monthly on all deposits over $2000. Steve's bank is offering 5% interest compounded weekly on the same size deposits. If you plan to leave your money in the bank for 2 years, which bank should you choose?
March 16 Compound Interest 2
March 16 Compound Interest 2

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  • 2. If you invest $1000 at an interest rate of 8% compounded semi-annually for 4 years how much money would you have?
  • 3. Jim's Bank is offering 6% interest compounded monthly on all deposits over $2000. Steve's bank is offering 5% interest compounded weekly on the same size deposits. If you plan to leave your money in the bank for 2 years, which bank should you choose?