Sunshine bank offers 6% simple interest on deposits. Tangerine bank offers 5% interest compound annually. State the difference i

Question

3 years ago

6

n final balances if $2000 is deposited in each bank for 2 years.
A) $202.80

B) $35

C) $25

D) $5

2 answers:

stepladder [879] · Answer 1 · 2021-12-24T22:01:41+03:00

6 0

2000+2(.06*2000)-2000(1.05^2)=$35.00

So the simple interest at 6% yields $35 more than the compound 5% interest.

Arada [10] · Answer 2 · 2021-12-24T19:37:57+03:00

Arada [10]3 years ago

5 0

B) $35 Hope it helps :)