Answer:
1)state bank
2)$16.21
Step-by-step explanation:
CHECK THE COMPLETE QUESTION BELOW
Whitney deposits $9,000 for two years. She compares two different banks. State Banks will pay her 4.1% interest, compounded monthly. Kings Savings will pay her 4.01% interest, compounded continuously.Which bank pays higher interest? How much higher?
The Amount in the formula for compound interest is
A= P(1+r)^2
P = principal amount,
r = rate per periods,
t = number of periods,
To know the interest she got from the State bank, we say
P = $ 9000, r = 4.1% = 0.041, t = 2 years,
A= 9000(1+0.041)^2
A= 9000(1.041)^2
= 9767.74
Then interest earned = A - P
= 9767.74 - 9000
= $ 767.74
To know the interest she got from the State bank, we say
P = $ 9000, r = 4.01% = 0.0401, t = 2 years,
A= 9000(1+0.0401)^2
A= 9000(1.0401)^2
= 9751.53
Then interest earned = A - P
= 9767.74 - 9000
= $ 751.53
The difference between the two interest is ($ 767.74 - $ 751.53)
=$16.21
Hence state bank will have $16.21 higher interest
