Yield the same amount of interest as investment described

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Reference no: EM131065627

Leo wishes to invest $8000.00 that he saved from his summer job. His bank offers 3.75% for a one-year term investment or 3.5% for a six-month term. Help Leo to investigate his options.

a) How much will Leo receive after one-year if he invests for six-months at a time at 3.5% each time?

b) What would the one-year rate have to be to yield the same amount of interest as the investment described in part b)?

Reference no: EM131065627

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