Answer:
Bank A
Step-by-step explanation:
We find the Simple Interest for each Bank
Bank A
A savings account at bank A earns 5%
simple interest.
Where
P = $5,000.00
R = 5%
T = 2 years
Compound quarterly = 4
First, convert R percent to r a decimal
r = R/100
r = 5%/100
r = 0.05 per year,
Then, solve our equation for A
A = P(1 + r/n)^nt
A = 5,000.00(1 + 0.0125/4)(4)(2)
A = $ 5,522.43
A = P + I where
P (principal) = $ 5,000.00
I (interest) = $ 522.43
For Bank B
P = $5,000.00
R = 4%
T = 2 years
Compound quarterly = 4
First, convert R percent to r a decimal
r = R/100
r = 4%/100
r = 0.04 per year,
Then, solve our equation for A
A = P(1 + r/n)nt
A = 5,000.00(1 + 0.01/4)(4)(2)
A = $ 5,414.28
A = $ 5,414.28
A = P + I where
P (principal) = $ 5,000.00
I (interest) = $ 414.28
Therefore, the bank that would give Gabriel more interest is Bank A
