Question

Jeffery is trying to decide between two investing account plans. An accountant

told Jeffery that Plan A offers a semi-annual compounded interest rate of 2.75%,
while Plan B offers 5.8% interest compounded annually. Which is the better
plan? Explain.

Answer 1

The semi annual plan with a compounded interest rate of 2.75% is the better plan because the total interest rate annually would be equal to 5.5%, which is less of a payment than the second plan, which is greater than the first plan by 3%.

Explanation:

I hope this helps!