Time valueÂ Peter just got his driverâ€™s license, and he wants to buy a new sports car for $70,000. He has $3,000 to invest as a lump sum today. Peter is a conservative investor and he only invests in safe products. After approaching different banks, he is offered the following investment opportunities:
a. River Bankâ€™s savings account with an interest rate of 10.8% compounded monthly.
b. First State Bankâ€™s savings account with an interest rate of 11.5% compounded annually
c. Union Bankâ€™s saving account with an interest rate of 9.3% compounded weekly. How long will it take for Peter to accumulate enough money to buy the car in each of the three cases?