Homework Help is Here – Start Your Trial Now!
Business
Finance
Melvin Indecision has difficulty deciding whether to put his savings in Mystic Bank or Four Rivers Bank. Mystic offers 8% interest compounded semiannually. Four Rivers offers 6% interest compounded quarterly. Melvin has $12,500 to invest. He expects to withdraw the money at the end of 8 years. Calculate interest for each bank and identify which bank gives Melvin the better deal? (Use the Table provided.) (Do not round intermediate calculations. Round your answers to the nearest cent.) Interest Mystic Four Rivers Better deal

Melvin Indecision has difficulty deciding whether to put his savings in Mystic Bank or Four Rivers Bank. Mystic offers 8% interest compounded semiannually. Four Rivers offers 6% interest compounded quarterly. Melvin has $12,500 to invest. He expects to withdraw the money at the end of 8 years. Calculate interest for each bank and identify which bank gives Melvin the better deal? (Use the Table provided.) (Do not round intermediate calculations. Round your answers to the nearest cent.) Interest Mystic Four Rivers Better deal

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
See similar textbooks
icon
Related questions
Question
Future value interest factor of $1 per period at i% for n periods, FVIF(in). Period 0.5% 10% 15% 20% 3.0% 1 6 8.0% 1.0800 1.1664 1.2597 1.3605 1.4693 1.5859 1.7138 1.8509 1.9990 2.1589 23316 25182 2.7196 9.0% 1.0900 1.1881 1.2950 1.4116 1.5386 1.6771 1.8280 1.9926 2.1719 2.3674 2.5804 28127 3.0658 1.0050 10100 10150 1.0200 2 1.0100 1.0201 1.0302 10404 3 1.0151 1.0303 1.0457 1.0612 4 1.0202 1.0406 1.0614 1.0824 1.0253 1.0510 1.0773 1.1041 5 1.0304 1.0615 10934 1.1252 1.0355 1.0721 1.1098 1.1487 1.0407 1.0829 1.1265 1.1717 1.0459 1.0937 1.1434 1.1951 1.0511 1.1046 1.1605 12190 1.0564 1.1157 1.1779 12434 12 1.0617 1.1258 1.1956 12682 13 1.0570 1.1381 12136 12936 14 1.0723 1.1495 1.2318 13195 15 1.0777 1.1610 12502 13459 16 1.0831 1.1726 1.2690 1.3728 17 10885 1.1843 12880 1.4002 18 1.0939 1.1961 1.3073 1.4282 19 1.0994 12081 1.3270 1.4568 20 1.1049 1.2202 1.3469 1.4859 21 1.1104 1.2324 13671 15157 22 7 8 9 10 11 1.4106 1.3439 2.9372 3.1722 3.4259 3.7000 3.3417 3.6425 3.9703 4.3276 4.7171 5.1417 5.6044 6.1008 3.7975 4.1772 4.5950 5.0545 5.5599 6.1159 6.7275 3.9960 4.3425 47116 4.3157 46610 5.1120 6.1416 7.4002 5.0338 5.5466 5.4365 6.0180 58715 6.7251 7.3639 6.6586 7.2579 8.0635 8.1403 8.9543 9.8497 5.6729 6.3412 7.9111 8.8296 2.5% 3.5% 4.0% 4.5% 5.0% 5.5% 6.0% 6.5% 7.0% 7.5% 1.0250 1.0300 1.0350 1.0400 1.0450 1.0500 1.0550 1.0600 1.0650 1.0700 1.0750 1.0506 1.0509 1.0712 1.0816 1.0920 1.1025 1.1130 1.1236 1.1342 1.1449 1.1556 1.0769 1.0927 1.1087 1.1249 1.1412 1.1576 1.1742 1.1910 12079 1.2250 12423 1.1255 1.1038 1.1475 1.1699 1.1925 1.2155 1.2388 1.2625 1.2865 1.3108 1.3355 1.1314 1.1593 1.1877 12167 1.2462 12763 1.3070 1.3382 1.3701 1.4025 1.4356 1.1597 1.1941 1.2293 1.2653 1.3023 1.3401 1.3788 1.4185 1.4591 1.5007 1.5433 1.1887 1.2299 12723 1.3159 1.3509 1.4071 1.4547 1.5036 15540 1.6058 1.6590 1.2184 12668 1.3168 1.3586 1.4221 1.4775 1.5347 1.5938 1.6550 1.7182 1.7835 1.2489 1.3048 1.3629 1.4233 1.4861 1.5513 1.6191 1.6895 1.7626 1.8385 1.9172 1.2801 1.4802 1.5530 1.6289 1.7081 1.7908 1.8771 1.9672 20610 1.3121 1.3842 1.4500 16229 1.5395 1.7103 1.8021 1.8983 1.9992 2.1049 22156 1.3449 1.4258 1.5111 1.6010 1.6959 1.7959 1.9012 20122 2.1291 2.2522 2.3818 1.3785 1.4685 1.5640 1.6651 1.7722 1.8856 20058 2.1329 22675 24098 2.5604 14130 1.5126 1.6187 1.7317 1.8519 1.9799 21161 22609 24149 2.5785 2.7524 14483 1.5500 1.6753 1.8009 1.9353 2.0789 2.2325 2.3966 25718 27590 2.9589 1.4845 1.6047 1.7340 1.8730 20224 2.1829 2.3553 2.5404 2.7390 2.9522 3.1808 15216 1.6528 1.7947 1.9479 21134 2.2920 24848 2.6928 29170 3.1588 3.4194 1.5597 1.7024 1.8575 2.0258 2.2085 2.4066 26215 28543 3.1067 3.3799 3.6758 15087 1.7535 1.9225 2.1068 2.3079 2.5270 2.7656 30256 3.3005 36165 3.9515 1.6386 1.8061 1.9090 2.1911 24117 2.6533 2.9178 3.2071 3.5236 3.8597 4.2479 1.6796 1.8603 20594 22788 25202 2.7950 3.0782 3.3996 3.7527 4.1405 1.7216 4.5664 1.9161 21315 2.3699 26337 29253 32475 3.6035 3.9966 4.4304 4.9089 1.7646 1.9736 2.2061 24647 27522 30715 3.4262 3.8197 4.2564 47405 52771 1.8087 2.0328 2.2833 2.5633 2.8760 32251 3.6146 4.0489 4.5331 5.0724 1.8539 2.0938 2.3632 2.6658 3.0054 3.3864 3.8134 4.2919 4.8277 5.4274 6.0983 1.9003 2.1566 24460 27725 3.1407 3.5557 4.0231 1.9478 45494 5.1415 58074 6.5557 22213 25316 28834 3.2820 10.5869 3.7335 42444 48223 54757 1.9965 6.2139 7.0474 7.9881 2.2879 26202 2.9987 11.5926 3.4297 4.4778 5.1117 5.8316 6.6408 7.5759 20464 23566 27119 3.1187 8.6271 35840 12.6939 14.4210 4.1161 4.7241 5.4184 62107 7.1143 8.1441 9.3173 2.0976 24273 28068 32434 10 6528 12.1722 3.7453 13.8998 15.8531 4.3219 4.9840 5.7435 6.6144 7.6123 8.7550 10.0627 2.5001 2.9050 3.3731 11.5583 13.2677 3.9139 4.5380 15.2203 17.4494 5.2581 60881 7.0443 8.1451 9.4116 10.0677 12.5407 14.4618 16.6662 4.0900 47649 19.1943 5.5473 64534 7.5022 8.7153 10.1174 11.7371 13.6067 15.7633 18.2495 42740 5.0032 21.1138 58524 6.8406 7.9898 9.3253 10.8763 12.6760 14.7632 17.1820 4.4664 19.9832 5.2533 6.1742 7.2510 8.5092 99781 11.6920 13.6901 16.0181 18.7284 46673 21.4016 55160 6.5138 7.6061 90623 106766 12.5689 14.7853 17.3796 20.4140 48774 23.9604 6.8721 8.1473 9.6513 11.4239 13.5115 18.8569 22.2512 26.2366 7.2501 8.6361 102786 12.2236 14.5249 17.2456 20.4597 7.6400 9.1543 10.9457 13.0793 15.6143 18.6253 22.1988 80195 9.7035 11.6583 13.9948 16.7853 20.1153 24.0857 85133 10.2857 12.4161 14.9745 18.0442 21.7245 26.1330 9815 10.9029 13.2231 16 0227 19.3976 23.4625 28.3543 7.7616 94755 11.5570 14.0826 17.1443 20 8524 25.3395 30.7644 8.1497 9.9957 12.2505 14.9900 18.3444 22.4163 27.3666 33.3794 8.5572 10.5465 12.9055 15.9729 19.6285 24.0975 29 5560 36.2167 8.9850 11.1266 13.7646 17.0111 21.0025 31.9204 39.2951 9.4343 11.7385 145905 18.1168 22.4725 34.4741 42.6352 9.9050 12.3841 15.4559 19.2944 24.0457 10.4013 13.0653 16.3939 20.5485 25.7289 10.9213 13.7838 17.3775 21.8842 27.5299 11.4574 145420 18.4202 23 3067 29 4570 6.8485 7.5868 8.6231 96684 7.3964 8.3401 9.3992 1.1160 1.2447 1.3876 1.5460 1.1216 1.2572 1.4084 1.5769 1.1272 1.2697 1.4295 1.6004 1.1328 1.2824 1.4509 16405 1.1385 1.2953 14727 1.6734 1.1442 1.3082 1.4948 1.7069 1.1499 1.3213 15172 1.7410 1.1556 1.3345 15400 1.7758 1.1614 1.3478 15631 1.8114 1.1672 1.3613 1.5855 1.8476 1.1730 16103 1.8845 1.1789 1.3887 1.6345 1.9222 10 8347 11.9182 13.1100 3.9201 9.0490 102451 98182 11.1671 23.2252 1.1840 1.4025 1.6590 1.9507 25.5477 1.1907 1.4166 1.6839 1.9999 5.7910 15.9682 2.1500 22038 25751 2.2589 2.6523 2.3153 2.7319 2.3732 1.7091 2.0399 24325 1.7348 2.0807 2.4933 1.7608 2.1223 2.5557 1.7872 2.1647 26196 18140 22000 26851 1.8412 2.2522 2.7522 2.8210 28915 3.0067 3.5081 31119 36484 32209 3.7943 28139 3.3336 39461 2.8903 3.4503 4.1039 2.9852 3.5710 4.2681 30748 36960 4.4388 3.1670 3.2620 3.3599 1.1967 1.4308 12027 14451 1.2067 1.4595 1.2147 14741 5.0969 6.0814 28.1024 30 9127 34.0039 37.4043 41.1448 5.3262 6.3855 3.8254 46164 5.5650 6.7048 3.9593 4.8010 5.8164 7.0400 45.2593 1.2208 1.4809 1.2269 15038 1.2330 1.5188 40978 4.9931 7.3920 1.8688 2.2972 3.4607 42413 5.1928 6.3516 24.2538 28.7291 26.4367 31.4504 28 8160 34.4469 31.4004 37.7194 34.2363 41.3027 37.3175 45.2265 40.6761 49 5230 54.2277 59.3793 65 0204 71.1973 5.4005 66374 1.2392 1.5340 1.8969 23432 12454 15493 1.9253 2.3901 29638 12516 1.5648 1.9542 24379 44.3370 49 7852 54.7637 60.2401 66.2641 72.8905 80 1795 88.1975 48.3273 3.5645 4.3897 3.6715 45433 56165 6.9361 3.0379 3.7816 4.7024 58412 72482 12579 1.5805 1.9835 2.4865 3.1139 3.8950 4.9669 60748 75744 12642 1.5963 20133 25363 3.1917 40119 50373 63178 7.9153 1.2705 16122 20435 25871 3.2715 4.1323 52136 65705 8.2715 12768 1.6283 20741 26388 3.3533 4.2562 5.3961 6.8333 8.6437 12832 16446 2.1052 26916 34371 4.3839 55849 7.1067 90325 52.6767 46.2592 57.4176 25 9048 27,8477 29.9363 372320 32.1815 40 2106 34.5951 37.1997 77.9611 50.1912 62.5852 97.0172 54.4574 68.2179 85.3674 106.7190 45.9016 59.0863 74.3575 93.4773 117.3909 23 24 25 Interest 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 45 47 40 49 50 Melvin Indecision has difficulty deciding whether to put his savings in Mystic Bank or Four Rivers Bank. Mystic offers 8% interest compounded semiannually. Four Rivers offers 6% interest compounded quarterly. Melvin has $12,500 to invest. He expects to withdraw the money at the end of 8 years. Mystic 8.5% 1.0850 1.1772 1.2773 1.3859 1.5037 1.6315 1.7701 1.9206 2.0839 22610 2.4532 26617 2.8879 3.1334 3.3997 3.6087 4.0023 Calculate interest for each bank and identify which bank gives Melvin the better deal? (Use the Table provided.) (Do not round intermediate calculations. Round your answers to the nearest cent.) Four Rivers 6.5296 7,0846 Better deal 9.5% 1.0950 1.1990 1.3129 1.4377 1.5742 1.7238 1.8876 20669 2.2632 24782 27137 2.9715 32537 3.5629 3.9013 42719 46778 5.1222 56008 100% 1.1000 1.2100 13310 1.4541 1.6105 1.7716 1.9487 2.1436 2.3579 2.5937 2.8531 3.1384 3.4523
Transcribed Image Text:Future value interest factor of $1 per period at i% for n periods, FVIF(in). Period 0.5% 10% 15% 20% 3.0% 1 6 8.0% 1.0800 1.1664 1.2597 1.3605 1.4693 1.5859 1.7138 1.8509 1.9990 2.1589 23316 25182 2.7196 9.0% 1.0900 1.1881 1.2950 1.4116 1.5386 1.6771 1.8280 1.9926 2.1719 2.3674 2.5804 28127 3.0658 1.0050 10100 10150 1.0200 2 1.0100 1.0201 1.0302 10404 3 1.0151 1.0303 1.0457 1.0612 4 1.0202 1.0406 1.0614 1.0824 1.0253 1.0510 1.0773 1.1041 5 1.0304 1.0615 10934 1.1252 1.0355 1.0721 1.1098 1.1487 1.0407 1.0829 1.1265 1.1717 1.0459 1.0937 1.1434 1.1951 1.0511 1.1046 1.1605 12190 1.0564 1.1157 1.1779 12434 12 1.0617 1.1258 1.1956 12682 13 1.0570 1.1381 12136 12936 14 1.0723 1.1495 1.2318 13195 15 1.0777 1.1610 12502 13459 16 1.0831 1.1726 1.2690 1.3728 17 10885 1.1843 12880 1.4002 18 1.0939 1.1961 1.3073 1.4282 19 1.0994 12081 1.3270 1.4568 20 1.1049 1.2202 1.3469 1.4859 21 1.1104 1.2324 13671 15157 22 7 8 9 10 11 1.4106 1.3439 2.9372 3.1722 3.4259 3.7000 3.3417 3.6425 3.9703 4.3276 4.7171 5.1417 5.6044 6.1008 3.7975 4.1772 4.5950 5.0545 5.5599 6.1159 6.7275 3.9960 4.3425 47116 4.3157 46610 5.1120 6.1416 7.4002 5.0338 5.5466 5.4365 6.0180 58715 6.7251 7.3639 6.6586 7.2579 8.0635 8.1403 8.9543 9.8497 5.6729 6.3412 7.9111 8.8296 2.5% 3.5% 4.0% 4.5% 5.0% 5.5% 6.0% 6.5% 7.0% 7.5% 1.0250 1.0300 1.0350 1.0400 1.0450 1.0500 1.0550 1.0600 1.0650 1.0700 1.0750 1.0506 1.0509 1.0712 1.0816 1.0920 1.1025 1.1130 1.1236 1.1342 1.1449 1.1556 1.0769 1.0927 1.1087 1.1249 1.1412 1.1576 1.1742 1.1910 12079 1.2250 12423 1.1255 1.1038 1.1475 1.1699 1.1925 1.2155 1.2388 1.2625 1.2865 1.3108 1.3355 1.1314 1.1593 1.1877 12167 1.2462 12763 1.3070 1.3382 1.3701 1.4025 1.4356 1.1597 1.1941 1.2293 1.2653 1.3023 1.3401 1.3788 1.4185 1.4591 1.5007 1.5433 1.1887 1.2299 12723 1.3159 1.3509 1.4071 1.4547 1.5036 15540 1.6058 1.6590 1.2184 12668 1.3168 1.3586 1.4221 1.4775 1.5347 1.5938 1.6550 1.7182 1.7835 1.2489 1.3048 1.3629 1.4233 1.4861 1.5513 1.6191 1.6895 1.7626 1.8385 1.9172 1.2801 1.4802 1.5530 1.6289 1.7081 1.7908 1.8771 1.9672 20610 1.3121 1.3842 1.4500 16229 1.5395 1.7103 1.8021 1.8983 1.9992 2.1049 22156 1.3449 1.4258 1.5111 1.6010 1.6959 1.7959 1.9012 20122 2.1291 2.2522 2.3818 1.3785 1.4685 1.5640 1.6651 1.7722 1.8856 20058 2.1329 22675 24098 2.5604 14130 1.5126 1.6187 1.7317 1.8519 1.9799 21161 22609 24149 2.5785 2.7524 14483 1.5500 1.6753 1.8009 1.9353 2.0789 2.2325 2.3966 25718 27590 2.9589 1.4845 1.6047 1.7340 1.8730 20224 2.1829 2.3553 2.5404 2.7390 2.9522 3.1808 15216 1.6528 1.7947 1.9479 21134 2.2920 24848 2.6928 29170 3.1588 3.4194 1.5597 1.7024 1.8575 2.0258 2.2085 2.4066 26215 28543 3.1067 3.3799 3.6758 15087 1.7535 1.9225 2.1068 2.3079 2.5270 2.7656 30256 3.3005 36165 3.9515 1.6386 1.8061 1.9090 2.1911 24117 2.6533 2.9178 3.2071 3.5236 3.8597 4.2479 1.6796 1.8603 20594 22788 25202 2.7950 3.0782 3.3996 3.7527 4.1405 1.7216 4.5664 1.9161 21315 2.3699 26337 29253 32475 3.6035 3.9966 4.4304 4.9089 1.7646 1.9736 2.2061 24647 27522 30715 3.4262 3.8197 4.2564 47405 52771 1.8087 2.0328 2.2833 2.5633 2.8760 32251 3.6146 4.0489 4.5331 5.0724 1.8539 2.0938 2.3632 2.6658 3.0054 3.3864 3.8134 4.2919 4.8277 5.4274 6.0983 1.9003 2.1566 24460 27725 3.1407 3.5557 4.0231 1.9478 45494 5.1415 58074 6.5557 22213 25316 28834 3.2820 10.5869 3.7335 42444 48223 54757 1.9965 6.2139 7.0474 7.9881 2.2879 26202 2.9987 11.5926 3.4297 4.4778 5.1117 5.8316 6.6408 7.5759 20464 23566 27119 3.1187 8.6271 35840 12.6939 14.4210 4.1161 4.7241 5.4184 62107 7.1143 8.1441 9.3173 2.0976 24273 28068 32434 10 6528 12.1722 3.7453 13.8998 15.8531 4.3219 4.9840 5.7435 6.6144 7.6123 8.7550 10.0627 2.5001 2.9050 3.3731 11.5583 13.2677 3.9139 4.5380 15.2203 17.4494 5.2581 60881 7.0443 8.1451 9.4116 10.0677 12.5407 14.4618 16.6662 4.0900 47649 19.1943 5.5473 64534 7.5022 8.7153 10.1174 11.7371 13.6067 15.7633 18.2495 42740 5.0032 21.1138 58524 6.8406 7.9898 9.3253 10.8763 12.6760 14.7632 17.1820 4.4664 19.9832 5.2533 6.1742 7.2510 8.5092 99781 11.6920 13.6901 16.0181 18.7284 46673 21.4016 55160 6.5138 7.6061 90623 106766 12.5689 14.7853 17.3796 20.4140 48774 23.9604 6.8721 8.1473 9.6513 11.4239 13.5115 18.8569 22.2512 26.2366 7.2501 8.6361 102786 12.2236 14.5249 17.2456 20.4597 7.6400 9.1543 10.9457 13.0793 15.6143 18.6253 22.1988 80195 9.7035 11.6583 13.9948 16.7853 20.1153 24.0857 85133 10.2857 12.4161 14.9745 18.0442 21.7245 26.1330 9815 10.9029 13.2231 16 0227 19.3976 23.4625 28.3543 7.7616 94755 11.5570 14.0826 17.1443 20 8524 25.3395 30.7644 8.1497 9.9957 12.2505 14.9900 18.3444 22.4163 27.3666 33.3794 8.5572 10.5465 12.9055 15.9729 19.6285 24.0975 29 5560 36.2167 8.9850 11.1266 13.7646 17.0111 21.0025 31.9204 39.2951 9.4343 11.7385 145905 18.1168 22.4725 34.4741 42.6352 9.9050 12.3841 15.4559 19.2944 24.0457 10.4013 13.0653 16.3939 20.5485 25.7289 10.9213 13.7838 17.3775 21.8842 27.5299 11.4574 145420 18.4202 23 3067 29 4570 6.8485 7.5868 8.6231 96684 7.3964 8.3401 9.3992 1.1160 1.2447 1.3876 1.5460 1.1216 1.2572 1.4084 1.5769 1.1272 1.2697 1.4295 1.6004 1.1328 1.2824 1.4509 16405 1.1385 1.2953 14727 1.6734 1.1442 1.3082 1.4948 1.7069 1.1499 1.3213 15172 1.7410 1.1556 1.3345 15400 1.7758 1.1614 1.3478 15631 1.8114 1.1672 1.3613 1.5855 1.8476 1.1730 16103 1.8845 1.1789 1.3887 1.6345 1.9222 10 8347 11.9182 13.1100 3.9201 9.0490 102451 98182 11.1671 23.2252 1.1840 1.4025 1.6590 1.9507 25.5477 1.1907 1.4166 1.6839 1.9999 5.7910 15.9682 2.1500 22038 25751 2.2589 2.6523 2.3153 2.7319 2.3732 1.7091 2.0399 24325 1.7348 2.0807 2.4933 1.7608 2.1223 2.5557 1.7872 2.1647 26196 18140 22000 26851 1.8412 2.2522 2.7522 2.8210 28915 3.0067 3.5081 31119 36484 32209 3.7943 28139 3.3336 39461 2.8903 3.4503 4.1039 2.9852 3.5710 4.2681 30748 36960 4.4388 3.1670 3.2620 3.3599 1.1967 1.4308 12027 14451 1.2067 1.4595 1.2147 14741 5.0969 6.0814 28.1024 30 9127 34.0039 37.4043 41.1448 5.3262 6.3855 3.8254 46164 5.5650 6.7048 3.9593 4.8010 5.8164 7.0400 45.2593 1.2208 1.4809 1.2269 15038 1.2330 1.5188 40978 4.9931 7.3920 1.8688 2.2972 3.4607 42413 5.1928 6.3516 24.2538 28.7291 26.4367 31.4504 28 8160 34.4469 31.4004 37.7194 34.2363 41.3027 37.3175 45.2265 40.6761 49 5230 54.2277 59.3793 65 0204 71.1973 5.4005 66374 1.2392 1.5340 1.8969 23432 12454 15493 1.9253 2.3901 29638 12516 1.5648 1.9542 24379 44.3370 49 7852 54.7637 60.2401 66.2641 72.8905 80 1795 88.1975 48.3273 3.5645 4.3897 3.6715 45433 56165 6.9361 3.0379 3.7816 4.7024 58412 72482 12579 1.5805 1.9835 2.4865 3.1139 3.8950 4.9669 60748 75744 12642 1.5963 20133 25363 3.1917 40119 50373 63178 7.9153 1.2705 16122 20435 25871 3.2715 4.1323 52136 65705 8.2715 12768 1.6283 20741 26388 3.3533 4.2562 5.3961 6.8333 8.6437 12832 16446 2.1052 26916 34371 4.3839 55849 7.1067 90325 52.6767 46.2592 57.4176 25 9048 27,8477 29.9363 372320 32.1815 40 2106 34.5951 37.1997 77.9611 50.1912 62.5852 97.0172 54.4574 68.2179 85.3674 106.7190 45.9016 59.0863 74.3575 93.4773 117.3909 23 24 25 Interest 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 45 47 40 49 50 Melvin Indecision has difficulty deciding whether to put his savings in Mystic Bank or Four Rivers Bank. Mystic offers 8% interest compounded semiannually. Four Rivers offers 6% interest compounded quarterly. Melvin has $12,500 to invest. He expects to withdraw the money at the end of 8 years. Mystic 8.5% 1.0850 1.1772 1.2773 1.3859 1.5037 1.6315 1.7701 1.9206 2.0839 22610 2.4532 26617 2.8879 3.1334 3.3997 3.6087 4.0023 Calculate interest for each bank and identify which bank gives Melvin the better deal? (Use the Table provided.) (Do not round intermediate calculations. Round your answers to the nearest cent.) Four Rivers 6.5296 7,0846 Better deal 9.5% 1.0950 1.1990 1.3129 1.4377 1.5742 1.7238 1.8876 20669 2.2632 24782 27137 2.9715 32537 3.5629 3.9013 42719 46778 5.1222 56008 100% 1.1000 1.2100 13310 1.4541 1.6105 1.7716 1.9487 2.1436 2.3579 2.5937 2.8531 3.1384 3.4523
Expert Solution
steps

Step by step

Solved in 3 steps with 2 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Banking and Financial Services
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Essentials Of Investments
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
FUNDAMENTALS OF CORPORATE FINANCE
FUNDAMENTALS OF CORPORATE FINANCE
Finance
ISBN:
9781260013962
Author:
BREALEY
Publisher:
RENT MCG
Financial Management: Theory & Practice
Financial Management: Theory & Practice
Finance
ISBN:
9781337909730
Author:
Brigham
Publisher:
Cengage
Foundations Of Finance
Foundations Of Finance
Finance
ISBN:
9780134897264
Author:
KEOWN, Arthur J., Martin, John D., PETTY, J. William
Publisher:
Pearson,
Fundamentals of Financial Management (MindTap Cou…
Fundamentals of Financial Management (MindTap Cou…
Finance
ISBN:
9781337395250
Author:
Eugene F. Brigham, Joel F. Houston
Publisher:
Cengage Learning
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Finance
ISBN:
9780077861759
Author:
Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS