1. Sandy Bank pays 5 percent simple interest on its savings account balances, whereas Tightwad Bank (A real FDIC Insured Bank) pays 5 percent compounded annually. If you deposited $6,000 in each bank, how much more money would you earn from the Tightwad Bank account at the end of 3 years?
2. 

Chapter 4 Simple Interest versus Compound Interest (Similar to problem 1, p.118, Ch. 4) 4) Sandy Bank pays 5 percent simple interest on its savings account balances, whereas Tightwad Bank (A real FDIC Insured Bank) pays 5 percent compounded annually. If you deposited $6,000 in each bank, how much more money would you earn from the Tightwad Bank account at the end of 3 years? N=0 1 2 3 years H H PV = $6,000 I= 5% PMT= 0 FVSandy = ? FVT Tightwad