Robin and Teryll each have to invest and they disagree about the best place to start a savings account. Teryll found a savings and loan company that will guarantee a rate of compounded monthly for the next years. Robin says her bank is much better because they will give her interest compounded semi-annually for the next ten years. In ten years, which account will end up with the greatest amount and how much difference is there?
Use the formula for compound interest given in the Math Notes box in this lesson.