Biology Forums - Study Force

Mishu wants to invest an inheritance of $20,000 for one year. His credit union offers 8.85% for a one-year term or 8.80% for a six-month term.
(a) How much will Mishu have after one year if he invests at the one-year rate?
(b) How much will Mishu have after one year if he invested for six months at a time at 8.80% each time?
(c) What would the one-year rate have to be to yield the same amount of interest as the investment described in part (b)?

---

(a) After one year, Mishu will have  

(Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.)

(b) One year after the initial investment Mishu will have

(Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.)

(c) The one-year rate to yield the same amount of interest as the investment described in part (b) is

(Round the final answer to two decimal places as needed. Round all intermediate values to six decimal places as needed.)

Content hidden