Calculate the value of the two accounts at end of one year

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Joseph is a friend of yours. He has plenty of money but little financial sense. He received a gift of $12,000 for his recent graduation and is looking for a bank in which to deposit the funds. Partners' Savings Bank offers an account with an annual interest rate of 3.75?% compounded? semiannually, while Selwyn's offers an account with a 3.50?% annual interest rate compounded continuously. Calculate the value of the two accounts at the end of one year, and recommend to Joseph which account he should choose.

1. The The future value, FVn?, of the $12,000 deposit with the Partners' Savings Bank is ______? (Round to the nearest cent.)

2. The The future value, FVn?, of the $12,000 deposit with the Selwyn Savings Bank is ______? (Round to the nearest cent.)

3. Which bank should Joseph choose Partners' or Selwyn?

Reference no: EM131347327

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