Robin and Teryll each have to invest, but they disagree about the best place to start a savings account. Teryll finds a savings and loan company that will guarantee an interest rate of compounded monthly for the next ten 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 have the larger amount and by how much?
Terryll's account balance after ten years can be calculated by using the following equation.