You take $4,500 to ABC Bank and deposit it in an account that pays 4% interest compounded annually.

a. Use the formula to calculate what your account balance would be at the end of 2 years.

b. You find out that PQR Bank also pays 5% interest per year but compounded quarterly. So, you pull out your money from ABC Bank at the end of 1 year and put $4,500 in PQR Bank. Calculate how much money you will have in PQR bank at the end of 2 years.

c. What is the difference between the interest earned at the 2 banks in 1 year?