February 21, 2014
Task # 2 Page 353 Problem # 73 Parts A-E
While I had difficulty at first with the assignment I was able to finally find a website online that had all the information necessary to complete it. I went to interest.com and was able to find numerous banks, their interest rates, and compounding frequencies. However I did have to search some of the websites of certain individual banks for their compounding frequencies as a few were not shown. This was not extremely difficult to do because on the initial website where the all the individual banks were listed I simply copied and pasted the name to the browser and found the one I needed. I was also able to find calculators for various other types of investment accounts and mortgages. The first Chart I am displaying will be one I have completed from the website using its calculator. The second chart will be one in which I will try to complete the calculations on my own, hopefully they will match.
Chart # 1 interest.com calculator:
Name of the Bank Deposit APY Frequency % of Int. Term Future Value
Ally Bank $2,000.00 1.20% Daily 1.99% 36mths $2,073.31
GE Capital Bank $2,000.00 1.30% Daily 1.29% 36mths $2,078.92
Alo Star Bank $2,000.00 1.35% Daily 1.35% 36mths $2,082.66
CIT $2,000.00 1.27% Daily 1.27% 36mths $2,078.67
In finally figuring out a little bit about the calculator and how to compute the figures on my own I was able to find the following information. I calculated the bank information from above using the APY percentage and in doing so I found some small discrepancies. Ally Bank uses the APY of 1.2% while GE Capital uses their lower percentage of interest 1.99% to calculate the compounding interest. Alo Bank also uses the APY percentage; however I am uncertain as to why there is exactly a $1.00 error in the last computation on CIT Bank. I recalculated the number several times and they all were the same. My only clue is...