Elementary and Intermediate Algebra: Concepts & Applications (6th Edition)

Published by Pearson
ISBN 10: 0-32184-874-8
ISBN 13: 978-0-32184-874-1

Chapter 11 - Quadratic Functions and Equations - 11.1 Quadratic Equations - 11.1 Exercise Set - Page 707: 91


It is better to receive 3 percent interest every 6 months.

Work Step by Step

If you receive 3 percent interest every 6 months, the actual amount of interest received in a year will be: $$(1+.03)^2 -1\\ 1.03^2-1\\ 1.0609-1 \\ .0609$$ Thus, we see that receiving 3 percent every 6 months will result in a higher annual rate than 6 percent interest.
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