Ariana has $1,000 to put in a savings account. She is choosing between two banks. Bank A offers 7% compounded quarterly and bank B offers 7.1% compounded śemiannually. If she saves for a year which bank would pay more interest and by how much.

Some new academics question and answer requested students to indicate what they agree to is the most important important thing for a student to do in order for you to score success. One which response stood out from the rest was practice. Successful people are certainly born successful; they become successful through hard work and dedication. This is how you can obtain your goals. following some question and answer examples that you might possibly make use of to elevate your knowledge and gain insight that will help you to sustain your school studies.

Question:

Ariana has $1,000 to put in a savings account. She is choosing between two banks. Bank A offers 7% compounded quarterly and bank B offers 7.1% compounded śemiannually. If she saves for a year which bank would pay more interest and by how much.

Answer:

Answer:

Bank B would pay more interest than Bank A by $0.40

Step-by-step explanation:

we know that    

The compound interest formula is equal to  

 

where  

A is the Final Investment Value  

P is the Principal amount of money to be invested  

r is the rate of interest  in decimal

t is Number of Time Periods  

n is the number of times interest is compounded per year

in this problem we have  

Bank A

 

substitute in the formula above  

 

 

 

Bank B

 

 

 

 

Find out the difference

therefore

From the answer and question examples above, hopefully, they can possibly guide the student resolve the question they had been looking for and observe of each and every thing stated in the answer above. You would certainly then have a discussion with your classmate and continue the school learning by studying the subject alogside each other.

READ MORE  Which of the following adheres to formal business English?

Leave a Reply

Your email address will not be published.