Bank account that offers the best effective rate of return

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Reference no: EM131520286

You are about to deposit $264 into one of the following savings accounts to be left on deposit for 25 years. Each bank offers an account with a different interest rate and compuonding period. Assuming you want to maximize your wealth, how much money would be in the bank account that offers the best effective rate of return after 25 years?

Bank A: 9.5 percent rate compunded semi-annually

Bank B:9.4 percent rate compunded monthly

Bank C: 9.3 percent rate compunded daily

Bank D: 9.2 percent rate compounded continuosly

Reference no: EM131520286

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