a commercial bank pays 6 percent interest for savings and compounds it quarterly?

Question

where this other bank pays 6 1/2 percent simple interest. if a customer wants to deposit 5000 for 5 years, in which bank should he make the deposit
how to solve this, what is the solution

Answer 1

6% interest compounded quarterly is (0.06 / 4 = 0.015) X P or you can take ($5,000.00 X 1.015) for 20 iterations (interest is compounded quarterly, so 4 times a year times 5 years).
In your other example, it is $5,000.00 X 1.065 for 5 iterations.
In both cases, after 5 years, the $5,000.00 will be $6,850.43.
It makes no difference as to the amount of interest that will accrue.

Answer 2

b. an entire 300 and sixty 5 days could be interior the 5325 selection so a a million/2 300 and sixty 5 days could be approximately 5162.5. because of the fact it is compounded quarterly, the stability could be somewhat greater than 5162.5 although. it could be 5163.80 two