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Business, 23.02.2021 01:50 iamsecond235p318rq
The local bank offers to pay 5% interest on savings deposits. In a nearby town, the bank pays 1.25% per 3-month period (quarterly). A man who has $3000 to put in a savings account wonders whether the higher interest paid in the nearby town justifies driving there to make the deposit. Assuming he will leave all money in the account for 2 years, how much additional interest would he obtain from the out-of-town bank over the local bank
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The local bank offers to pay 5% interest on savings deposits. In a nearby town, the bank pays 1.25%...
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