Answer:
a. Ameribank-$15,157.50
b. Capital Two-$4,646.25
Step-by-step explanation:
a. Tad's savings is $15,000, we calculate his total amount at the end of the year for each bank:
#Ameribank
![A=P+I=P+PRT\\\\=15000+15000\times 0.0105\times 1\\\\=\$15,157.50](https://tex.z-dn.net/?f=A%3DP%2BI%3DP%2BPRT%5C%5C%5C%5C%3D15000%2B15000%5Ctimes%200.0105%5Ctimes%201%5C%5C%5C%5C%3D%5C%2415%2C157.50)
#Huffington( we use the effective rate to calculate the compound amount):
![i_m=(1+i/m)^m-1\\\\=(1+0.0095/12)^[12}-1=0.009541\\\\A=P(1+i_m)^n\\\\=15000(1.009541)^1\\\\=\$15,143.12](https://tex.z-dn.net/?f=i_m%3D%281%2Bi%2Fm%29%5Em-1%5C%5C%5C%5C%3D%281%2B0.0095%2F12%29%5E%5B12%7D-1%3D0.009541%5C%5C%5C%5CA%3DP%281%2Bi_m%29%5En%5C%5C%5C%5C%3D15000%281.009541%29%5E1%5C%5C%5C%5C%3D%5C%2415%2C143.12)
#Sixth-Third, Take 1 yrs=52 weeks:
![i_m=(1+i/m)^m-1\\\\=(1+0.01/52)^{52}-1=0.01005\\\\A=15000(1.01005)^1\\\\=\$15,150.74](https://tex.z-dn.net/?f=i_m%3D%281%2Bi%2Fm%29%5Em-1%5C%5C%5C%5C%3D%281%2B0.01%2F52%29%5E%7B52%7D-1%3D0.01005%5C%5C%5C%5CA%3D15000%281.01005%29%5E1%5C%5C%5C%5C%3D%5C%2415%2C150.74)
#Hence, Ameribank is the best option as his money grows to $15,157.50 which is greater than all the remaining two options.
b. We use the compound interest formula
to determine which bank gives the best option:
#Capital Two. r=3.75%, n=12,t=4
![A=P(1+r/n)^{nt}\\\\=4000(1+0.0375/12)^{12\times4}\\\\=\$4,646.25](https://tex.z-dn.net/?f=A%3DP%281%2Br%2Fn%29%5E%7Bnt%7D%5C%5C%5C%5C%3D4000%281%2B0.0375%2F12%29%5E%7B12%5Ctimes4%7D%5C%5C%5C%5C%3D%5C%244%2C646.25)
#J.C Morgan, t=2, r=3.55% n=12
![A=P(1+r/n)^{nt}\\\\=4000(1+0.0355/12)^{12\times 2}\\\\=\$4,293.87](https://tex.z-dn.net/?f=A%3DP%281%2Br%2Fn%29%5E%7Bnt%7D%5C%5C%5C%5C%3D4000%281%2B0.0355%2F12%29%5E%7B12%5Ctimes%202%7D%5C%5C%5C%5C%3D%5C%244%2C293.87)
#Silverman Slacks, n=12,t=3, r=3.65%
![A=P(1+r/n)^{nt}\\\\=4000(1+0.0365/12)^{12\times3}\\\\=\$4,462.14](https://tex.z-dn.net/?f=A%3DP%281%2Br%2Fn%29%5E%7Bnt%7D%5C%5C%5C%5C%3D4000%281%2B0.0365%2F12%29%5E%7B12%5Ctimes3%7D%5C%5C%5C%5C%3D%5C%244%2C462.14)
We compare the investment amounts after t years:
![Capital>Silver>Morgan=4646.25>4462.14>4293.87](https://tex.z-dn.net/?f=Capital%3ESilver%3EMorgan%3D4646.25%3E4462.14%3E4293.87)
Hence, Capital two is the best option with an investment amount of $4,646.25