Grady is comparing three investment accounts offering different rates.

Account A: APR of 4.95% compounding monthly
Account B: APR of 4.85% compounding quarterly
Account C: APR of 4.75% compounding daily

Which account will give Grady at least a 5% annual yield?

Account A

Account B

Account C

Account B and Account C

Question

Grady is comparing three investment accounts offering different rates. 

Account A: APR of 4.95% compounding monthly
Account B: APR of 4.85% compounding quarterly
Account C: APR of 4.75% compounding daily

Which account will give Grady at least a 5% annual yield?

 Account A

 Account B

 Account C

 Account B and Account C

tkhunny · Answer

Well, do it!

$\left(1 + \dfrac{0.0495}{12}\right)^{12} - 1$

$\left(1 + \dfrac{0.0485}{4}\right)^{4} - 1$

$\left(1 + \dfrac{0.0475}{365}\right)^{365} - 1$

anonymous · Answer

Account A!

tkhunny · Answer

Did you do them all or just decide that the first one that worked was enough?

anonymous · Answer

No, I did them all. I got 0.050 for A, 0.0493 for B, and 0.0486 for account C

tkhunny · Answer

Perfect!

anonymous · Answer

Thank you!