Answer:
Step-by-step explanation:
Given that interest rates are as follows:
Let P be 100 dollars for each.
A) 3.15% compounded monthly.
Hence amount = [tex]100(1+\frac{3.15}{1200} )^{12}[/tex]
Final amount = 103.20 dollars
B) 2.25% compounded quarterly
Final amt. = [tex]100(1+\frac{2.25}{400} )^4[/tex]
=102.27
C) 2.05% compounded daily
Amount = [tex]100(1+\frac{2.05}{36500} )^{365}[/tex]
=102.07
Obviously A is the best deal.
