Reference no: EM131760677

You are trying to save enough money to open your own garage. You have inherited $25,000. You are aware that interest rates are not much these days but you decide to put your inheritance into an interest bearing savings account until you determine a better place for your money. First Bank offers 1.5% interest compounded semi-annually. Second Bank offers 1.45% interest compounded quarterly. Based on the interest you would expect to draw in a year, which bank has the better deal? How much more interest will your money draw if you invest in the bank offering the better deal?