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Another bank advertises a 9 month CD with a 6.15% APY, $1000 minimum deposit, nominal annual...

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Accounting

Another bank advertises a 9 month CD with a 6.15% APY, $1000minimum deposit, nominal annual interest rate of 5,97%, compoundeddaily, using 30 day months, and hence a 360 day year. (a) Roundingto the nearest penny, compute the future value of this 9 month CDwith a principal of $5,000 using the nominal compound interest rateof 5.97% and the compounding procedure actually used by the bank.(b) Rounding to the nearest penny, compute the future value of thesame CD using the APY in your calculations instead. (c) Commentupon the dollar amounts computed in parts (a) and (b).

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