Question

Please answer quickly for 5 stars and brainliest!!

Answer 1

Answer:

Bank West

$242.82

Step-by-step explanation:

To find which bank will yield more interest for Emilio, we can solve for the interest of each bank by using the Compound interest formula:

$A=P(1+\dfrac{r}{n})^{nt}$

For the Bank West we have:

n = 4 Quarterly

t = 6 years

r = 3.8% or 0.038

P = 15820

Let's substitute them in the formula.

$A=15820(1+\dfrac{0.038}{4})^{4(6)}$

$A=15820(1+\dfrac{0.038}{4})^{24}$

$A=15820(1+0.0095)^{24}$

$A=15820(1.0095)^{24}$

$A=19849.89$

Now let's solve for the Interest. We subtract our total amount to the principal amount.

Interest = 19849.89 - 15820

Interest = 4029.89

Now let's solve for the First Bank.

n = 12 Monthly

t = 5 years

r = 4.3% or 0.043

P = 15820

Let's substitute them in the formula.

$A=15820(1+\dfrac{0.043}{12})^{12(5)}$

$A=15820(1+\dfrac{0.043}{12})^{60}$

$A=19607.07$

Now for the interest:

Interest = 19607.07 - 15820

Interest = 3787.07

This gives us:

Bank West Interest = $4029.89

First Bank Interest = $3787.07

So Bank West will earn more interest than First Bank.

To find how much more interest we subtract the interest of Bank West to First Bank.

4029.89 - 3787.07 = $242.82