Lia has $1,000 to put in a savings account. She is choosing between two Banks . Bank A offers 5% compounded quarterly & Bank
B offers 5.1% compounded semi-annually. If Lia plans on keeping her money in a savings account for a year , which bank would pay her more in interest, and by how much ? A. Bank A by 70.5 cents B. Bank B by 33 cents C.Bank B by 70.5 cents D. Bank A by 33 cents
We can even make sense of this comparison in the context: the value of the dimes, as a fraction of the value of all the coins in the piggy bank, is greater than the number of dimes, as a fraction of all the coins in the piggy bank.
This task could be used for assessment but it is mainly designed to provide a rich context for students to work on their understanding of fractions.
