Robin and Teryll each have $8,000 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 3.9% compounded monthly for the next ten years. Robin says her bank is much better because they will give her 4% interest compounded semi-annually for the next ten years. In ten years, which account will have the larger amount and by how much? Homework Help ✎
Terryll's account balance after ten years can be calculated by using the following equation.