A fifteen (15) year $8000 CD through Bank X pays 4.96% interest compounded weekly. A fifteen (15) year CD that pays 5% interest

Question

A fifteen (15) year $8000 CD through Bank X pays 4.96% interest compounded weekly. A fifteen (15) year CD that pays 5% interest compounded annually is available at Bank Y. Explain which bank maximizes your investment.

Kunduz · Accepted Answer

Click to see the answer