Let's say you inherit $6000 and decide to put it in the bank for the next 6 years until you are out of college. You have a choice of 2 banks: The first offers to pay you an interest rate of 13% per year. The second offers to pay you interest every month, but only 1%. Which is the better choice?
The equation has to go by y=ab^x form. I have the equation i just don't know what to do next. I have y= 6000(1.13)^6 <for the first bank> and y= 6000(1.12)^6
The number in parenthesis indicate it's growth and so you add a one to the percent. But, you change 1% per month to 12% per year...Do I solve for y and see which bank has the highest value?
Thank you,
Spardawg :?
The equation has to go by y=ab^x form. I have the equation i just don't know what to do next. I have y= 6000(1.13)^6 <for the first bank> and y= 6000(1.12)^6
The number in parenthesis indicate it's growth and so you add a one to the percent. But, you change 1% per month to 12% per year...Do I solve for y and see which bank has the highest value?
Thank you,
Spardawg :?