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Mathematics, 10.11.2020 07:00 kendrawalraven
A bank account pays 0.5% monthly interest.
1. If $500 is put in the account, what will the balance be at the end of one year, assuming no
additional deposits or withdrawals are made?
2. What is the effective annual interest rate?
O a
Ob
a. (500) * (1.005)^15 or $1530.84 b. About 6.17%, because (1.005) 12 is about 1,0617.
a. (500) * (1.00)^12 or $530.84 b. About 6.17%, because (1.005) 12 is about 1.0617.
a. (1500) * (1.005)12 or $530.84 b. About 6.17%, because (1.005) 12 is about 1.0617.
a. (500) (1.005)^12 or $530.84 b. About 6.17%, because (1.005) 12 is about 1.0617.
Ос
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A bank account pays 0.5% monthly interest.
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