10-36. Talayna has some money that she wants to put into a savings account and she has two options. One option pays 2% interest compounded quarterly. Another option pays only 1.5%,

but is compounded monthly. If she wants to deposit the money for 5 years, which account is

better? If she wants to deposit for 25 years, which account is better? Homework Help

Plzzz

Option 1

Step-by-step explanation:

Effective Interest Rate = [ 1 + ( r / m) ]^ mt -  { 1 }

where i = nominal interest rate , n = number of compounding per time period, t = number of time periods

Option 1 : Interest rate 'i' = 2% , Quarterly compounding 'n' = 4 , t = 25 years  

EAR  = [ 1 + 2% / 4 ]^ (4 x 25) - [ 1 ]  = 0.6466 , ie 64.66%

Option 2 :  Interest rate 'i' = 2% , Monthly compounding 'n' = 12 , t = 25 years  

EAR = [ 1 + 1.5% / 12 ] ^ (12 x 25) - [ 1 ] = 0.4546 , ie 45.46%

As option 1 has higher EAR than option 2, former is better than latter

option 2 is correct.

step-by-step explanation:

we are given two inequality equation

x+y> 5 and -3x+2y< -2

first we draw the graph of both function using t-table method

equation: x+y> 5

for x=0, y=5

for x=-5, y=0

table:

x   :   0     5

y   :   5     0

test point (0,0) , 0> 5

false

equation: -3x+2y< -2

for x=0, y=-1

for x=2, y=4

table:

x   :   0     2

y   : -1       4

test point (0,0) , 0< -2

true

now we draw the graph. see the attachment for graph.

common region would be solution set.

option 2 is correct.