University Bank pays 5% interest compounded quarterly on regular savings accounts and Rosemont Savings Bank pays 5.5% compounded

Question

University Bank pays 5% interest compounded quarterly on regular savings accounts and Rosemont Savings Bank pays 5.5% compounded semiannually. Vasily and Oxana Cherchenko had $4,000 to invest for 4 years. Based on the interest to be earned, which bank offers the better investment?

Kunduz · Accepted Answer

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