Question

Sue has $800 to use to open a savings account. She has the following three options.

a.) Buy a savings bond at 10% interest compounded annually.
b.) Open an account at a bank which pays 9% compounded monthly.
c.) Open an account at a bank which pays 9.5% compounded quarterly.

If she leaves the money untouched for 10 years, which would be the best option for her? Please be sure to include the total saved in each case.

Answer 1

C)Open an account at bank which pays 9.5% compounded quarterly.

She will invest 200$ for 10 years.