nanialma31
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Two banks are running promotions on savings accounts in anticipation of higher interest rates in the future.

First National Bank is offering 2.15% interest rates on their savings account, which compounds interest continuously.

First Federal Bank is offering 2.25% interest rates on their savings account, which compounds interest semi-annually.

If you are going to deposit $5000 for four years, which account should you choose? How much more will you earn from the higher-earning savings account?

Respuesta :

Answer:

First Federal Bank is best

Step-by-step explanation:

First national bank gives:

$5,449.03 after 4 years being compounded annually at a rate of 2.15%

First federal bank gives:

$5,468.12 after 4 years at a rate of 2.25%

Please let me know if I did anything wrong. I will immediately fix my mistakes :)

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