Mary Ellen invests $4000 in an account that earns 1.8% annual interest compounded monthly.
1 answer:
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Answer:
First bank = $6792
City bank = $6803
Star bank = $6817
Step-by-step explanation:
The lists of banks and their annual interests rates are attached.
For first bank, since the interest is 7.5%, The total interest = 7.5% of $20000 = 0.075 × $20000 = $1500
For city bank, since the interest is 8.2%, The total interest = 8.2% of $20000 = 0.082 × $20000 = $1640
For Star bank, since the interest is 9%, The total interest = 9% of $20000 = 0.09 × $20000 = $1800
The loan plus interest for the banks annually are:
First bank = $20000 + $1500 = $21500
City bank = $20000 + $1640 = $21640
Star bank = $20000 + $1900 = $21900
The monthly payments for the banks are:
First bank = $21500 / 12 months = $1792
City bank = $21640 / 12 months = $1803
Star bank = $21800 / 12 months = $1817
Since The cost to run the gym each month is $5,000. Ed's total monthly expenses for each loan option = monthly payments + cost for each month. It is calculated as:
First bank = $5000 + $1792 = $6792
City bank = $5000 + $1803 = $6803
Star bank = $5000 + $1817 = $6817
