Answer:
$12.06
Step-by-step explanation:
In order to solve this, you must put both interest rates with the initial deposit into the compounded interest equation: A = P (1+r/n)^nt.
Bank of Canada:
P (principle amount deposited) = 4800
r (interest rate) = 2.4% or .024
n (number of terms compouded per year) = 1
t (total number of year) 8
A = 4800 (1+.024)^8
A = $5802.84
TD Bank:
P (principle amount deposited) = 4800
r (interest rate) = 2.4% or .024
n (number of terms compouded per year) = 12
t (total number of year) 8
A = 4800 (1+.024/12)^12*8
A = 5814.90
If you invest with TD over bank of Canada you will receive $12.06 more.
