Calculate the effective annual return in each bank

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Reference no: EM131975019

Bank A pays 5.9% interest, with annual compounding. Bank B pays 5.8% interest, with monthly compounding. (Please show all work)

A) Calculate the effective annual return in each bank.

B) How long will it take for your money to double in each bank? Please state your answers in years, rounded to two decimal points (e.g., 6.34 years).

C) What bank will you choose if you are a depositor, and can save at either bank?

Reference no: EM131975019

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