Suppose you were considering depositing money in a savings account at two different banks. each bank will pay 5% interest. however, bank a compounds annually and bank b compounds semiannually. provide a detailed explanation with your investment amount, period of time and your resulting investment. in addition, provide details on how you calculated using excel (with formula) or financial calculator inputs. which bank would you choose and why? be sure to cite your source(s).

Answer

The answer and procedures of the exercise are attached in a microsoft excel document.  

Explanation  

Please consider the data provided by the exercise. If you have any question please write me back. All the exercises are solved in a single sheet with the formulas indications.  

Bank-B is better to invest because it has higher Future value due to higher effective annual interest rate.

explanation:

the contractual interest rate is the interest the borrower must pay and the interest the lender receives, or more simply, it is the interest rate stated on a bond whereas the market interest rate is “the investors demand for loaning funds”. therefore, bonds can either be sold at a premium, face value, or discount.

balanced lifestyle would be the type of lifestyle that fulfill all aspects of our life, including financial security, personal achievements, emotional balance, and intimate relationships with other people.

for me personally, the job that i would choose to achieve a balanced lifestyle is opening an online store.

online store can be managed from the comfort of our phone. if we are the owner of the store, we can determine our own working hours. we can arrange our working hours so we have time to do things such as taking care of children, cultivating romantic relationship, or do our hobby.