Answered step by step
Verified Expert Solution
Question
1 Approved Answer
7. Bank A offers to pay you 8% annual simple interest on a $5,000 deposit, so long as you leave your deposit (and interest) untouched
7. Bank A offers to pay you 8% annual simple interest on a $5,000 deposit, so long as you leave your deposit (and interest) untouched for five years. Bank B is willing to pay you 6% interest compounded annually, for a five-year deposit. After the five years are up, how much more, or less, will you have earned from the compound interest deposit with bank B than you would with the simple interest from bank A? A. Bank A pays $308.87 more than bank B B. Bank A pays $1,700.00 more than bank B d. Bank B pays $191.12 more than Bank A 6. Bank B pays $346.64 more than Bank A
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started