document.write( "Question 859894: Hello, I would like someone to check if I did this correctly please!
\n" ); document.write( "Given: Bank A is lending money at 5.7% interest compounded annually. The rate of bank B is 5.65% compounded monthly. At which bank will you pay the less interest over 10 years period? A hint is the given formula S=P(1+r/n)^t*n where P dollars are deposited into an account paying an annual rate of interest r compounded n times per year, then after t years the account will have S dollars.
\n" ); document.write( "My work:
\n" ); document.write( "For Bank A S=P(1+.057/1)^10*1 so about P(1.7408)
\n" ); document.write( "For Bank B S=P(1+.0565/12)^10*12 so about P(1.757)\r
\n" ); document.write( "\n" ); document.write( "What I'm worried about is what the question is asking for (paying the less interest). Since bank A has less money deposited does that mean that in Bank A you pay less? So the answer would be bank A?\r
\n" ); document.write( "\n" ); document.write( "Thanks in advance! \n" ); document.write( "
Algebra.Com's Answer #518059 by richwmiller(17219)\"\" \"About 
You can put this solution on YOUR website!
Who said bank A has less money deposited?
\n" ); document.write( "The two banks are loaning you money and charging you interest on the loan.
\n" ); document.write( "Bank A is charging less interest according to your figures.\r
\n" ); document.write( "\n" ); document.write( "S=P(1+.0565/12)^10*12 so about P(1.757)
\n" ); document.write( "S = 17408. on 10000
\n" ); document.write( "S=P(1+.057/1)^10*1 so about P(1.7408)
\n" ); document.write( "S = 17408. on 10000
\n" ); document.write( "They charge the same. \r
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