Respondus LockDown Browser eft 1:10-47 Taze Johnson: Attempt 1 Previous Page Nex

Question

Respondus LockDown Browser eft 1:10-47 Taze Johnson: Attempt 1 Previous Page Next Page Page 7 of 20 Note: It is necommended that you save your response as you compliete each question Question 7 (10 points) Fast City Bank pays 7 percent simple interest on its savings account balances, whereas Second City Bank prys 7 percent compoueded annually If you made a deposit of $8,000 in each bank, how much more money would you earm from your Second City Bank account at the end of 10 years? $1,137.1 $2,137.2 58,131% 3,137 Previos Page Next Page Page 7 of 20 Go to Submit Quiz

Explanation / Answer

Answer is $ 2137.21 Explanation: Interest in First bank: Amount deposit 8000 Rate of interest 7% Period 10 yrs Interest earned in 10 years 5600 (8000*7%*10) Interest in Second bank: Amount deposit 8000 Rate of interest 7% Period 10 yrs Amount after 10 years 15737.21 (8000* (1.07)^10) Less: Amount deposit 8000 Interest earned 7737.21 Excess interest earned =7737.21 - 5600 =2137.21

Related Questions

Navigate

• Browse (All)
• Browse R
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.