On July 1, 2001, a savings account has $1000. This account earns interest at an...
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Finance
On July 1, 2001, a savings account has $1000. This account earns interest at an annual rate of 2.5% compounded continuously. A competing bank is attempting to attract new customers by offering to add $25 immediately to any new account opened with a minimum $1000 deposit, and the new account would earn interest at the annual rate of 2.5% compounded semiannually. To choose one of the following three options on July 1, 2001, find the accumulated amount on July 1, 2001, for each option in parts (a) through (c) below.
(a) Leave the money at the first bank.
The accumulated amount is
$
(Do not round until the final answer. Then round to the nearest cent as needed.)
(b) Move the money to the competing bank.
The accumulated amount is
$
(Do not round until the final answer. Then round to the nearest cent as needed.)
(c) Leave half the money at the first bank and move the other half to the competing bank.
The accumulated amount is
$
(Do not round until the final answer. Then round to the nearest cent as needed.)
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