Robin and Teryll each have $8,000 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 3.9% compounded monthly for the next 10 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 end up with the greatest amount and how much difference is there? Homework Help ✎
Use the formula for compound interest given in the Math Notes box in this lesson.