Question

You get a gift of $1,000.  You decide that you want to invest all of the money in a savings account.  However, your bank has two different savings plans.  Determine the final amount in the account for each plan in 5 years.  Round your answers to two decimal places if needed. 

Plan A:  The bank gives you 4% interest rate and it is compounded every two months.  
 
Plan B:  The bank gives you a 10% interest rate and compounds the interest every 6 months.

Final Account balance for Plan A: $ 
 
Final Account balance for Plan B: $

Answer 1

So you basically get 104% of your Savings Account every two months for Plan A.

Plan B makes it 110% of your Savings Account every 6 months. Now we just calculate it...I'm sure your allowed a calculator, so just do 110% of it till 5 years.

If you still don't understand I can explain it more.