Bank account that offers the best effective rate of return

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Reference no: EM131884153

You are about to deposit $133 into one of the following savings accounts to be left on deposit for 25 years. each bank offers an account with a different interest rate and compounding period. Assuming you want to maximize your wealth, how much money would be in the bank account that offers the best effective rate of return after 25 years?

Bank A : 3.5 % rate compounded semi-annually

Bank B: 9.4 percent rate compounded monthly

Bank C : 9.3 % rate compounded daily

Bank D: 9.2 % rate compounded continously

(Enter the dollar amount only - do not enter the bank letter. Round your answer to 2 decimal places)

Reference no: EM131884153

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