Question

Please help me with both questions :(

Answer 1

Answer:

2.) $520

3.) less

Step-by-step explanation:

I'm going to assume that the interst is compoudning and is convertable once a year

The compound interest formula for interest compounding only once a year is as follows

$AV=PV(1+i)^n$

plug in the numbers and get

$500(1+.04)^{1}=500*1.04=520$

3.) If the interest rate is lower at the credit union he would obvioulsy be paying less (assuming that this interest rate is convertable annually as well)