9514 1404 393
Answer:
C. Bank A - she will make $230.02 more.
Step-by-step explanation:
The account balance at each bank can be computed from ...
A = P(1 +r/n)^(nt)
where principal P is invested at annual rate r compounded n times per year for t years.
<u>Bank A</u>
Sumaya's balance after 5 years will be ...
A = 8500(1 + 0.0225/2)^(2·5) = 9506.14
<u>Bank B</u>
Sumaya's balance after 5 years will be ...
A = 8500(1 +0.0175/12)^(12·5) = 9276.67
__
The balance at Bank A is larger by ...
9506.14 -9276.67 = 229.47
The closest answer choice is ...
C. Bank A - she will make $230.02 more
_____
<em>Comment on the discrepancy</em>
The difference between the offered answer choices and the values computed here arise from the use of rounding in intermediate calculations. We did no rounding until the final answer. The offered choices seem to be rounded to about 8 digits, possibly the consequence of using an inadequate calculator.
