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Back to 6.4 Compound Interest

6.4 Exercise 19

Avg difficulty 2.5

Minh has a choice of banks in which he will open a savings account. He will deposit $3,200 and he wants to get the best interest he can. The banks advertise as follows:

Bank Interest Rate
ABC Bank 2.08% compounded monthly
123 Bank 2.09% compounded annually
XYZ Bank 2.05% compounded daily

Which bank offers the best interest?

OpenStax Contemporary Mathematics, 6.4 Compound Interest, exercise 19

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Adapted from Contemporary Mathematics © 2023 Rice University. Licensed under CC BY 4.0. Source: Contemporary Mathematics. Imported at revision fa7c1a1.