You are saving to buy a $188,000 house. there are two competing banks in your area, both offering certificates of deposit yielding 7.3 percent. how long will it take your initial $105,000 investment to reach the desired level at first bank, which pays simple interest? (do not round intermediate calculations and round your answer to 2 decimal places, e. g., 32.16.) number of years how long will it take your initial $105,000 investment to reach the desired level at second bank, which compounds interest monthly?

Instructions are listed below

Explanation:

Giving the following information:

You are saving to buy a $188,000 house. There are two competing banks in your area, both offering certificates of deposit yielding 7.3 percent.

Bank A:

initial  investment $105,000

n=[ln(FV/PV)]/ln(1+r)

n=[ln(188000/105000)]/ln(1+0.073)= 8.26 years

Bank B:

Effective rate= 0.073/12= 0.0061

n=[ln(188000/105000)]/ln(1+0.0061)= 95.78 months/12= 7.98 years

answer; maintain a safe following distance;

answer; at prices that violate government price regulations;