Offering certificates of deposit yielding

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Reference no: EM131300066

You are saving to buy a $193,000 house. There are two competing banks in your area, both offering certificates of deposit yielding 7.8 percent.

How long will it take your initial $110,000 investment to reach the desired level at First Bank, which pays simple interest? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

Number of years

How long will it take your initial $110,000 investment to reach the desired level at Second Bank, which compounds interest monthly? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

Number of years

Reference no: EM131300066

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