7. Two banks offer different interest rates on deposits. Bank A offers 12% per year, and Bank B offers 5.9% every six months. a. If you put $5000 in Bank A, how much would you have after 10 years? b. If you put $5000 in Bank B, how much would you have after 10 years? c. At what rate would Bank A have to pay to match Bank B’s rate? [Hint: $5000 would need to end up at your answer to part (b) after 10 years.]
7. Two banks offer different interest rates on deposits. Bank A offers 12% per year, and Bank B offers 5.9% every six months. a. If you put $5000 in Bank A, how much would you have after 10 years? b. If you put $5000 in Bank B, how much would you have after 10 years? c. At what rate would Bank A have to pay to match Bank B’s rate? [Hint: $5000 would need to end up at your answer to part (b) after 10 years.]
Calculus: Early Transcendentals
8th Edition
ISBN:9781285741550
Author:James Stewart
Publisher:James Stewart
Chapter1: Functions And Models
Section: Chapter Questions
Problem 1RCC: (a) What is a function? What are its domain and range? (b) What is the graph of a function? (c) How...
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It’s a pre calculus question
![7. Two banks offer different interest rates on deposits. Bank A offers 12% per year, and Bank B offers
5.9%
every
six months.
a. If you put $5000 in Bank A, how much would you have after 10 years?
b. If you put $5000 in Bank B, how much would you have after 10 years?
c. At what rate would Bank A have to pay to match Bank B's rate? [Hint: $5000 would need to
end up at your answer to part (b) after 10 years.]
d. The rate of bank B appears lower than that of A. Why do
you
end
dn
with more money from B?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fa4117cac-23e7-449a-b251-99443c1e90ff%2F61139322-a19b-4eff-95c5-76798b62c1c0%2Fzjo1fg_processed.jpeg&w=3840&q=75)
Transcribed Image Text:7. Two banks offer different interest rates on deposits. Bank A offers 12% per year, and Bank B offers
5.9%
every
six months.
a. If you put $5000 in Bank A, how much would you have after 10 years?
b. If you put $5000 in Bank B, how much would you have after 10 years?
c. At what rate would Bank A have to pay to match Bank B's rate? [Hint: $5000 would need to
end up at your answer to part (b) after 10 years.]
d. The rate of bank B appears lower than that of A. Why do
you
end
dn
with more money from B?
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