SOLUTION: two banks pay simple interest on short-term deposits. bank a pays 5% p.a. over 3 years, and bank b pays 5.5% p.a. for 2 1/2 years. the difference between the two banks final payout

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Question 1153423: two banks pay simple interest on short-term deposits. bank a pays 5% p.a. over 3 years, and bank b pays 5.5% p.a. for 2 1/2 years. the difference between the two banks final payout figure, if $10,000 was invested in each account is:
a. $0
b. $125
c. $250
d. $1,375
e. $1,500

Answer by MathLover1(20850)   (Show Source): You can put this solution on YOUR website!
Simple Interest formula:

where
= final payout

%=
(number of years)
bank :




bank :



the difference between the two banks final payout figure: $
answer:
b. $

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