Problem:
You have $5,000 to deposit. Regency Bank offers 15 percent per year compounded monthly (1.25 percent per month), while King Bank offers 15 percent but will only compound annually.
Required:
Question 1: How much will your investment be worth in 20 years at Regency Bank?
Question 2: How much will your investment be worth in 20 years at King Bank?
Note: Please provide through step by step calculations.