1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
ASHA 777 [7]
3 years ago
8

Samir is trying to decide between two checking account plans. After researching plans at two banks, he finds that Unity Bank off

ers a monthly compounded interest rate of 0.14%, while Sunrise Banking offers 1.6% interest compounded annually. Which is the better plan? Explain.
(SHOW WORK)
Mathematics
2 answers:
GREYUIT [131]3 years ago
8 0

Answer:

The monthly compounded interest rate of 0.14% of Unity Bank is a better plan.

Step-by-step explanation:

<em>Step 1 : Write the formula for calculating a monthly compound interest rate and for calculating an annually compounded interest rate.</em>

Monthly compound interest rate = P(1+r/n)^nxt

<em>n=12 (number of months in a year)</em>

<em>t=1 (number of years)</em>

Annually compound interest rate = P(1+r/n)^nxt

<em>n=1 (because it is for 1 year only)</em>

<em>t=1 (number of years=1)</em>

<em>Step 2 : Lets assume that P is $100 in both banks and time is 1 year.</em>

<em>Step 3 : Lets substitute the values to find out which one is better.</em>

Monthly compound interest rate = P(1+r/n)^nxt

Monthly compound interest rate = 100(1+0.14/12)^12x1

Monthly compound interest rate = 114.93

114.93 - 100 = $14.93 per month

14.93 x 12 = $179.16 for 12 months or 1 year

Annually compound interest rate = P(1+r/n)^nxt

Annually compound interest rate = 100(1+1.6/1)^1x1

Annually compound interest rate = 260

260-100 = $160 for 1 year

Therefore, the monthly compounded interest rate of 0.14% of Unity Bank is a better plan.

!!

N76 [4]3 years ago
5 0

Answer:

The Unity Bank is offering a good plan.

Step-by-step explanation:

Unity Bank offers a monthly compounded interest rate of 0.14%

So, yearly rate will be = 0.14\times12=1.68% or 0.0168

Sunrise Banking offers 1.6% or 0.016 interest compounded annually.

Lets check an example with these two rates.

The compound interest formula is = A=P(1+r/n)^{nt}

Lets take P = $1000 and t = 1 year

Case 1: when r = 1.68% and n = 12

Putting the values in formula we get

A = 1000(1+0.0168/12)^{12}

= 1000(1.0014)^{12}

A = $1016.92

Case 2: when r = 1.6% and n = 1

Putting the values in formula we get

A = 1000(1+0.016/1)^{1}

= 1000(1.016)^{1}

A = $1016.00

So, we can see that the first case gives more return than second one.

Therefore, the Unity Bank is offering a good plan.

You might be interested in
Square MATH is shown at the right. Assume its vertices have integer coordinates. What are the coordinates of the midpoint of the
Mariana [72]

Answer: F(-0.5,-0.5)

Step-by-step explanation:

A(3,3)      H(-4,-4)

The coordinates of the midpoint of the diagonal AH F(x,y):

\displaystyle\\F(x,y)=(\frac{3+(-4)}{2} ,\frac{3+(-4)}{2} )\\\\F(x,y)=(\frac{3-4}{2} ,\frac{3-4}{2})\\\\F(x,y)=(\frac{-1}{2},\frac{-1}{2})\\\\F (x,y) =(-0.5,-0.5)

8 0
1 year ago
Test due in 3 minutes please help.
adelina 88 [10]

Answer:

you cant use brainly for tests

Step-by-step explanation:

3 0
3 years ago
Why does duffer Mcvolt want lights strung around the golf course
sertanlavr [38]

He really enjoys swinging nightclubs

4 0
3 years ago
50 please help on these questions!
saul85 [17]

Answer:

pic1=56-28x

pic2=3cd+12c

pic3=s−t

pic4= the last answer

pic5= the third answer

Step-by-step explanation:

i did the math so just trust me

6 0
3 years ago
Which answer is correct?
dalvyx [7]
(x-p)(x-q)
x^2 -qx -px + pq
x^2 -(q+p) x +pq
so the constant here is the product of p & q
the answer is A
8 0
3 years ago
Read 2 more answers
Other questions:
  • Kenya wants to buy a car. Dealer A said she could pay $2000 upfront and $150 per month after. When will she have paid $3500
    12·2 answers
  • Which fraction is equivalent to -3/7<br><br> 3/-7<br> -3/-7<br> -7/3<br> 7/3
    14·1 answer
  • A constructive company purchased seven house lots of the following sizes 1 3/8 acres , 2 1/8 acres. 1 1/8 acres , and 2 1/4 acre
    9·1 answer
  • 1/4 + 5/12 =? Simplify your answer.
    11·2 answers
  • In Texas, 30% of parolees from prison return to prison within 3 years. Suppose 15 prisoners are released from a Texas prison on
    11·1 answer
  • Please help !! Will grant brainliest !!
    7·1 answer
  • A class of sixty voted for class president. 30% voted for brad and 70% voted for Jane. How may votes did the winner get?
    9·1 answer
  • I Need help with this question please
    12·2 answers
  • What is the remainder when 12 345 x 54 321 is divided by 9?<br>1<br>2<br>3​
    15·2 answers
  • Which property is used when multiplying polynomials?
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!