Jane is having difficulty deciding whether to put her savings in the Mystic Bank or in the Four Rivers Bank. Mystic offers a 12% rate compounded quarterly, and Four Rivers offers 14% compounded semiannually. Jane has $40,000 to invest and expects to withdraw the money at the end of five years. Using the tables in the Business Math Handbook that accompanies the course textbook, determine which one of the following is the best deal.

Question

Jane is having difficulty deciding whether to put her savings in the Mystic Bank or in the Four Rivers  Bank. Mystic offers a 12% rate compounded quarterly, and Four Rivers offers 14% compounded  semiannually. Jane has $40,000 to invest and expects to withdraw the money at the end of five years.  Using the tables in the Business Math Handbook that accompanies the course textbook, determine which  one of the following is the best deal.